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India's Kerala state seeks $1.1 billion in compensation from MSC over oil spill
Published by Global Banking & Finance Review®
Posted on July 8, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 8, 2025
2 min readLast updated: January 23, 2026
Kerala sues MSC for $1.1 billion after an oil spill from a sunken vessel caused environmental damage. The court has detained another MSC ship as security.
By Arpan Chaturvedi
NEW DELHI (Reuters) -India's southern state of Kerala has sued Swiss-based Mediterranean Shipping Company and sought $1.1 billion in compensation after one of its container vessels sank and leaked fuel into the Arabian Sea in May.
The high court in Kerala issued an order late on Monday asking port authorities to effect "the arrest, seizure and detention" of another MSC ship anchored in the Vizhinjam Port in the state until it deposits securities for the claim amount.
MSC did not immediately respond to a Reuters request for comment. An Indian government statement in May said the company had appointed a marine services company for oil removal and environmental clean up.
On May 25, Liberia-flagged MSC ELSA3 ship travelling from Vizhinjam on India's southern tip to Kochi had capsized. The incident had resulted in leaking fuel and releasing cargo, some of which contained hazardous material.
The incident "has resulted in massive pollution of Kerala's marine ecosystem, with oil slicks and floating cargo causing serious detriment to the environment, coastal fisheries and public health," the state government said in its court filing, which is not public but was reviewed by Reuters.
After the May incident, the state government asked local fishermen to avoid going into the sea and distributed cash and food relief to around 105,518 families involved with fishing industry.
(Reporting by Arpan Chaturvedi; Editing by Aditya Kalra and Raju Gopalakrishnan)
Kerala is seeking $1.1 billion in compensation from the Mediterranean Shipping Company (MSC).
The oil spill was caused by the capsizing of the Liberia-flagged MSC ELSA3 ship, which leaked fuel and released cargo.
The incident has resulted in massive pollution of Kerala's marine ecosystem, with oil slicks and floating cargo causing serious detriment to the environment, coastal fisheries, and public health.
The Kerala government advised local fishermen to avoid going into the sea and distributed cash and food relief to around 105,518 families involved in the fishing industry.
The high court in Kerala ordered the arrest, seizure, and detention of another MSC ship anchored in Vizhinjam Port until further notice.
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