Kerala High Court Seeks Court-Monitored SIT and ₹1,000 Crore Fund in Wake of MSC ELSA 3 Sinking and MV Wan Hai 503 Fire
A Public Interest Litigation (PIL) filed before the Kerala High Court by Ummer Ottummal, representing Kerala’s fishing communities, calls for a judicially supervised, multi-agency Special Investigation Team (SIT). The SIT is to investigate two recent incidents off Kerala’s coast: the sinking of the Liberian-flagged MSC ELSA 3 on May 25 near Alappuzha and the fire aboard the Singapore-flagged MV Wan Hai 503 on June 9 near Kannur.
The petition seeks a ₹1,000 crore Coastal Victims Compensation, Rehabilitation and Environment Restoration Fund (CVCRERF), to be financed by the central government. These funds are intended for the rehabilitation of coastal populations, environmental restoration, and biodiversity conservation efforts. Additionally, the petition proposes forming an environmental restoration task force comprising independent scientists and regulatory bodies, under the supervision of the Court.
The proposed SIT would include representatives from the Ministry of Environment, Forest and Climate Change (MoEFCC), the Directorate General of Shipping, the Indian Coast Guard, and the National Disaster Management Authority, among others. The PIL also calls for a high-level inter-ministerial panel to address systemic maritime safety and security vulnerabilities.
The Kerala High Court, in earlier hearings, clarified that the loss of commercial fish due to pollution in India’s Exclusive Economic Zone (EEZ) constitutes an economic loss. Similarly, it noted ongoing environmental concerns from both the MSC ELSA 3 sinking and the MV Wan Hai 503 fire. An FIR has been filed under the Admiralty Act and other relevant laws.
Last week, the Court directed ₹6 crore in compensation—provided by MSC’s owners—to be placed in a fixed deposit as security against claims by cashew importers whose cargo was damaged in the MSC ELSA 3 incident. The ship's sister vessel, MSC MANASA F, was arrested to secure this interim relief.
The Court has urged state and central authorities to refrain from using public funds for salvage operations and to enforce recovery of costs from the shipping companies themselves. It emphasized adherence to statutory mechanisms such as the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, and other international maritime conventions.
Concerning the MV Wan Hai 503 fire, which involves approximately 1,754 containers laden with hazardous and flammable cargo, the Court has mandated a comprehensive emergency and environmental response. This includes steps to contain the blaze, mitigate pollution, and assess ecological impact.
These twin maritime incidents underscore critical issues in maritime safety, hazardous cargo regulation, and environmental accountability. The Court’s insistence on a ₹1,000 crore fund and SIT sets a precedent in holding corporate and governmental entities liable for ecological damage. It also reflects a growing global demand for adherence to Environmental, Social, and Governance (ESG) principles in maritime operations.
If the High Court approves the petition, it could institutionalize a framework for similar responses in future maritime emergencies, reinforcing the principle that polluters bear the cost of environmental restoration and community rehabilitation.
