Kerala HC Slashes Security Demand for Sinking Ship's Sister Vessel

The Kerala High Court on Thursday lowered the required security deposit for the release of the MSC AKITETA II, a sister vessel to the sunken MSC ELSA III, from Rs 9,531 crore to Rs 1,227.62 crore. The original sum was demanded as compensation for significant environmental damages caused by the sinking.

The High Court had previously conditionally arrested the MSC AKITETA II until the security was paid. Justice M A Abdul Hakhim's latest ruling offers some relief, though he emphasized the state retains the right to request an increase in this amount if further evidence justifies such action.

The Kerala government initially demanded the hefty security, claiming it represented compensation for environmental damage, costs incurred for mitigating actions, and economic losses to fishermen following the May sinking of MSC ELSA III, which led to substantial pollution.

(With inputs from agencies.)