India Seeks $1.1 Billion Reparation After MSC Fuel Spill in May

(Bloomberg) — The southern Indian state of Kerala has sued MSC Mediterranean Shipping Co. for the environmental damages caused by a ship capsizing off its coast, according to a court document.

The government is seeking 95.31 billion rupees ($1.1 billion) from the Geneva-based shipping giant, whose Liberian-flagged MSC ELSA 3, which was carrying chemicals and hundreds of tons of fuel, sank due to flooding in May. 

The High Court of Kerala, in its Monday order, asked port operator Adani Vizhinjam Port Pvt to seize another container belonging to the Swiss firm until the amount is deposited or initiated by the vessel owner. 

MSC didn’t immediately reply to an email seeking comment. 

The order won’t, however, prevent loading or unloading of cargo on the vessel ahead of a case review scheduled for July 10.

According to the order, earlier reported by Reuters, 86.26 billion rupees are meant to pay for the damage caused by MSC ELSA 3 to the coastal ecosystem, 3.78 billion rupees would cover remediation and 5.27 billion would compensate fisher-folks for loss of income. 

© 2025 Bloomberg L.P.

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