India has rejected an international court of arbitration’s order setting aside the country’s decision to suspend a water-sharing treaty with Pakistan on Monday. The Indian government rejected the court’s interim measure prohibiting New Delhi from building certain structures of the Ratle hydroelectric project in Jammu and Kashmir.India said it did not recognise the existence of the “illegally constituted” court in The Hague.The comments came after the Permanent Court of Arbitration said the Indus Water Treaty, which ensures water supply to 80 per cent of Pakistani farms, remained fully in force, adding that India had no justification for suspending or terminating the agreement.India suspended the treaty, that has been in force since 1960, last year after claiming that two of three assailants that killed 26 people at a tourist destination in Kashmir were allegedly from Pakistan.Islamabad denied any role in the attack and took legal action against India after it began work to boost the capacity of the reservoir of two hydroelectric projects in Kashmir. This was seen as a first ​tangible step by India to operate outside agreements covered by the Indus Waters Treaty between the two countries, which both have honoured since 1960 despite three wars and several other conflicts between them.The treaty, brokered by the World Bank, divided the six rivers of the Indus basin between the two countries. The three western rivers – Indus, Jhelum, Chenab – went to Pakistan and the three eastern rivers – Ravi, Beas, Sutlej – to India. It allowed India limited use of the western rivers for non-consumptive purposes like hydropower generation, but prohibited it from altering their flows in a way that could harm Pakistan’s access. “India must observe its obligations under the Treaty, including those ‌relating ⁠to the design and operation of its hydro-electric projects on the Western Rivers," the intergovernmental court said. Photo depicts the water running in the Gurez valley in Bandipora, India-administered Jammu and Kashmir, near India-Pakistan border on 3 June 2025 (AFP/Getty)The court said a neutral expert, appointed by the World Bank, would, by July 2027, judge whether the construction of hydroelectric plants in the Himalayan region was in line with the treaty.Agreeing with a demand by Pakistan, the ⁠court ​said India was not allowed to build the dam ​wall and power intake structure at the Ratle Hydro-Electric Plant above certain levels until 90 days after the neutral ​expert's decision. India, which is officially a member of the court, “categorically” rejected the order saying it never recognised the existence of the “illegally constituted” court. Holding that the treaty remains in abeyance, India's Ministry ⁠of Foreign Affairs said in a statement: "This so-called court of arbitration has no jurisdiction whatsoever ​to pronounce on India's ​sovereign decisions."Its pronouncements, now or in the future, will have no effect on India's actions in connection ​with the projects being undertaken by India."The Permanent Court of Arbitration, established by treaty in 1899, is an intergovernmental organisation providing a variety of dispute resolution services to the international community.Pakistan meanwhile, welcomed the findings and said India “remains bound by and must observe its obligations under” the Indus Water Treaty, the information ministry said.