The Supreme Court's order that struck down the Punjab Act on Sutlej-Yamuna Link canal as "un-Constitutional", has paved the way for the Centre to take over not only this project but all such projects where states are locked in an internecine conflict of interests. A central agency can now be formed and decide how much of the water flow is the need of the riparian states of Punjab, Rajasthan, and Haryana.
A five-member Constitution Bench of the Apex Court held that the Punjab Act cannot be considered legal and valid and the State of Punjab cannot absolve itself from its duties/liabilities arising out of the Agreement". Like in the Kaveri Water dispute, if there is an agreement between two or many riparian states, the state in which a river originates cannot say that it would not share water even on a Pro-Rata basis.