Kerala HC Accepts ₹1227 Cr Deposit, Releases MSC Akiteta II Amid Pollution Row

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In a significant development, the owners of the MSC Elsa III, a vessel that sank off Kerala's coast last year, have deposited ₹1,227.62 crore as a security amount in the Kerala High Court. The deposit, made in December, has enabled the release of the vessel's sister ship, MSC Akiteta II. According to a lawyer representing the owners, the court had initially allowed the company to furnish a bank guarantee through Standard Chartered Bank instead of the earlier-mentioned Kotak Mahindra Bank Ltd. The High Court had ordered the conditional arrest of MSC Akiteta II in July, pending the deposit of ₹9,531 crore as security. However, the amount was later reduced to ₹1227.62 crore after the court considered the owner's plea. The court has reserved the right to increase the security amount if additional evidence supports such a move. The Kerala government had filed a claim for ₹9,531 crore in damages, including ₹8,626.12 crore for environmental damage, ₹378.48 crore for costs related to damage prevention and removal, and ₹526.51 crore for economic losses to fishermen following the sinking of the MSC Elsa III. On May 25 last year, the MSC Elsa III capsized and sank off Kerala's coast, allegedly releasing oil and cargo that harmed the marine environment, damaged the coastline, and affected the livelihood of thousands of fishermen. The Environment Department estimated that the sunken vessel had 643 cargo containers and caused significant damage. The deposit by the owners marks a crucial step in addressing the environmental and economic impact of the incident.