The owner of container ship MSC Elsa 3, which sank off the Kerala coast in May 2025, has deposited a compensation amount of Rs 12.28 billion with the Kerala High Court in the form of a bank guarantee. Following the deposit, the court permitted the release of its sister vessel, MSC Akiteta-2.

The sister vessel, which had been detained off Vizhinjam under a court order dated November 11, has since sailed from the port. A Bench headed by Justice M. A. Abdul Hakhim posted the matter relating to compensation for further hearing on February 13.

In September, the High Court had reduced the security amount payable by the ship’s owners from Rs 95.31 billion to Rs 12.28 billion, modifying its earlier order of July 7. The original order had been passed in an admiralty suit filed by the Kerala government, pursuant to which MSC Akiteta-2 was detained at Vizhinjam.

The state government had sought compensation of Rs 95.31 billion, primarily citing marine and coastal pollution and losses suffered by fishing communities following the sinking of the vessel. Acting on the claim, the court had ordered the conditional arrest of the sister ship until the security amount was furnished.

In its earlier observations, the court held that the discharge of oil from the vessel into the sea had been established and that such discharge posed a serious risk of environmental pollution.