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Punjab, Haryana signal progress towards resolution of long-standing Sutlej Yamuna link canal dispute before Supreme Court

12/08/2026BlogNo Comments

The decades-old dispute between Punjab and Haryana over the Sutlej-Yamuna Link (SYL) Canal on Wednesday appeared to move towards a possible resolution, with the Supreme Court being informed that the two States were making significant progress towards arriving at an amicable settlement.

A Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V. Mohana was hearing the original suit instituted by Haryana in 1996 concerning the construction and completion of the SYL Canal.

Attorney General R. Venkataramani, appearing in the matter, told the Court that the two States were increasingly working towards a common position. He indicated that Punjab had shown greater willingness to engage in the process and that the remaining differences could potentially be resolved.

Senior Advocate Kapil Sibal also submitted that considerable progress had been made in the inter-State discussions.

Taking note of the developments, CJI Surya Kant observed, “Once the heart opens, the door also opens,” signalling the Court’s willingness to provide the States further time to pursue a negotiated settlement.

The SYL dispute has its origins in the reorganisation of Punjab in 1966, following which Haryana sought access to its allocated share of the Ravi-Beas waters through the canal. Punjab, however, has consistently resisted the completion of the project, maintaining that it lacks surplus water to transfer to Haryana.

In 1981, Punjab, Haryana and Rajasthan entered into a water-sharing arrangement under which the SYL Canal was to be completed within two years. The construction, however, was subsequently disrupted amid intense opposition and violence surrounding the project.

The Supreme Court, in 2002, directed Punjab to complete the canal. Punjab later enacted the Punjab Termination of Agreements Act, 2004, seeking to withdraw from its obligations under the 1981 arrangement.

In November 2016, the Supreme Court held that Punjab could not unilaterally resile from the inter-State agreement and declared the 2004 legislation unconstitutional. Despite the judicial pronouncements, the canal remains incomplete, leaving the dispute unresolved.

During Wednesday’s hearing, the Attorney General indicated that Punjab was expected to share certain further developments, expressing optimism that the outstanding issues could be “ironed out”. He consequently sought a short adjournment to facilitate continued discussions between the States.

The Court agreed that a brief deferment would not prejudice the proceedings in view of the apparent progress. CJI Surya Kant remarked that once the matter was moving in the right direction, a delay of a week would not materially affect the process.

The matter is likely to be taken up again on August 20, giving Punjab and Haryana additional time to work towards narrowing their differences and potentially arriving at a mutually acceptable resolution.

The post Punjab, Haryana signal progress towards resolution of long-standing Sutlej Yamuna link canal dispute before Supreme Court appeared first on India Legal.

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