India on Friday strongly dismissed the jurisdiction of an arbitration court set up under the Indus Waters Treaty as an "illegally constituted" forum and a "charade" that was set up at the direction of Pakistan.
The response followed a day after the Court of Arbitration, which is located in The Hague, released a "supplemental award" confirming that it has jurisdiction over disputes pertaining to the Kishenganga and Ratle hydroelectric projects in Jammu and Kashmir.
The court said Thursday that India's move to put the Treaty in abeyance "does not deprive the Court of Arbitration of competence."
India has been consistent in resisting the establishment of the arbitration court, which the World Bank launched in October 2022 after being requested by Pakistan. In its press statement Friday, the Ministry of External Affairs (MEA) announced, "India has never recognised the existence in law of this so-called Court of Arbitration, and India's position has all along been that the constitution of this so-called arbitral body is in itself a serious breach of the Indus Waters Treaty."
The MEA labelled the award "the latest charade at Pakistan's behest" and accused Islamabad of trying to "evade responsibility for being the world epicentre of terrorism."
India stands on the ground that the arbitration proceedings are unlawful and any award emanating from them are "per se void." New Delhi still interacts with a Treaty-compliant Neutral Expert appointed on the same day as the arbitration panel.
The centre of the controversy are the Kishenganga project on a tributary of Jhelum and the Ratle project on Chenab. Pakistan originally protested the design features of these hydroelectric power plants in 2015 and asked the World Bank to step in by appointing an impartial expert. Islamabad, however, later rescinded that appeal and asked for adjudication from the arbitration court.
India protested against this path, saying it could not be forced to host "parallel proceedings not contemplated by the Treaty." On 13 October 2022, the World Bank appointed both Michal Lino as the Neutral Expert and the Court of Arbitration — an action India considers contrary to the Treaty's system.
In its Friday statement, the Indian government once again emphasised that the Treaty was put in abeyance on 23 April after the Pahalgam terror attack in which at least 26 were killed and 10 injured.
"India has, exercising its rights as a sovereign state under the principles of international law, put the Indus Waters Treaty in abeyance, until Pakistan credibly and irrevocably renounces support for cross-border terrorism," the MEA stated.
Until such a time when the Treaty is suspended, India is not obligated to carry out any of its obligations under the Treaty.
No Court of Arbitration, let alone this illegally formed arbitral tribunal, which has no existence in the eye of law, has jurisdiction to inquire into the legality of India's actions.
The Indus Waters Treaty, signed by Indian Prime Minister Jawaharlal Nehru and Pakistani President Mohammad Ayub Khan on 19 September 1960 in Karachi, came after nine years of negotiation.
The treaty divides the Sutlej, Beas and Ravi rivers (Eastern Rivers) for India's unlimited use and provides Pakistan with access to the Indus, Jhelum and Chenab (Western Rivers).
In January 2023, India served a formal notice to Pakistan seeking modification of the treaty — the first such move in over 60 years.
The Indian government escalated this stance in September 2024 by issuing another notice, this time using the term “review,” indicating New Delhi’s intent to possibly renegotiate or withdraw from the treaty, which marks its 65th anniversary this year.
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