UP to 75 asylum seekers may be dead and 40 others are clinging to the hull of an upturned boat, which has capsized in Indonesian waters.
Up to 200 people were on board the vessel, which was on its way from Sri Lanka to Australia.
Prime Minister Julia Gillard distressed by asylum boat tragedy
The maritime drama began to unfold after 3pm (AEST) today when an Australian Customs and Border Protection surveillance plane spotted a vessel "in distress" 200km north of Christmas Island.
The observers immediately contacted Indonesian authorities, who are leading the rescue effort alongside the Australian Navy, Defence and Customs.
"It is believed up to 200 people could be on board, although this detail has not yet been confirmed," Customs said in a statement.
West Australian Police Commissioner Karl O'Callaghan said about 40 people were spotted on the upturned hull, others were in the water and up to 75 others may be dead.
"We have grave fears...
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