India Detains Liberian-Flagged Vessel as Court Orders US $720,000 Security Deposit over Massive Cargo Loss

Liberia, India: In a high-stakes international legal standoff, the High Court of Kerala, sitting in Kochi, India, has detained a Liberian-flagged vessel in an unprecedented action following the sinking of the MSC Elsa 3 vessel registered under Liberia.

By: Abraham Sylvester Panto

It can be recalled that on May 25, 2025, MSC Elsa 3 capsized off the coast of Alappuzha in southern India while transporting over 640 containers, including raw cashew nuts, furnace oil, diesel, calcium carbide, sculpture, and other industrial chemicals.

The Liberian-flagged vessel's sudden sinking triggered an environmental panic, disrupting fisheries, contaminating marine waters, and prompting a statewide disaster response.

Soon after, Indian importers of raw cashew nuts, especially from the Kollam district in Kerala, launched multiple admiralty suits before the Kerala High Court, demanding ₹6 crore (approximately $720,000) in damages from Mediterranean Shipping Company (MSC), the Swiss-based operator of the sunken ship.

Then on June 12, Indian authorities executed the court’s order, detaining MSC Manasa F as legal security pending MSC’s response. By Tuesday, June 17, 2025, MSC had deposited the full ₹6 crore in the registry of the Kerala High Court at Ernakulam, leading to the vessel’s release under strict court orders.

The case is formally scheduled for hearing on July 15, 2025, at the Kerala High Court, where the plaintiffs will argue that MSC Elsa 3 sank due to mechanical defects, poor maintenance, and negligent cargo handling—factors they claim were entirely preventable.

In a separate but related development, fishermen’s groups and environmental advocates have filed a Public Interest Litigation (PIL) at the same court, demanding a court-monitored Special Investigation Team (SIT) to probe both the Elsa 3 incident and an earlier fire on another cargo vessel. They are also calling for a ₹1,000 crore (US$120 million) environmental and livelihood restoration fund.

Following the complaint, the Kerala High Court ruled that the economic loss suffered by fishing communities due to the Liberian vessel’s pollution is compensable under law and warned that no public funds should be used to clean up maritime disasters caused by foreign-flagged ships.

Adding to the pressure, Indian police have filed a criminal First Information Report (FIR) against the owner, master, and crew of MSC Elsa 3, accusing them of negligence, mismanagement of hazardous cargo, and failure to declare dangerous goods properly under Indian maritime safety regulations.