The Punjab cabinet decided to hold an emergency session of the state Assembly on November 16.
The Haryana government on Tuesday said the Punjab Cabinet "does not have the power" to return land acquired for the Sutlej Yamuna Link (SYL) canal project to its "original owners" after the Supreme Court's verdict on the issue.
Earlier in the day, the Punjab Cabinet announced it will denotify the land acquired for the canal project and return it to the "original owners" at no cost.
"The Punjab government has no power to return the land as the Supreme Court has made it clear in its verdict that the state legislative or executive cannot frame laws on inter- state water issues," Haryana Advocate General (AG) Baldev Raj Mahajan said in Chandigarh.
"This decision (of the Punjab Cabinet) is completely illegal and without jurisdiction," he claimed.
The Supreme Court in its November 10 judgment held the Punjab Termination of Agreements Act, 2004, passed by Punjab to terminate water sharing pacts with neighbouring states as "unconstitutional".
Describing the move of the Punjab government as "vote bank politics", the A-G said, "The Punjab cabinet's decision is just a show-off in the wake of elections (next year)."
The Haryana government would take-up the matter in the Supreme Court when it is listed for hearing, he informed.
Mr Mahajan said Haryana will get the matter pertaining to the execution of the apex court's 2002 and 2004 orders to complete the SYL canal expedited.
"The state would press for the execution of the decree passed by the Supreme Court in favour of Haryana in 2002 and 2004. Whereby the SYL canal be constructed," he said.
The Advocate General said the execution petition was already pending with the Supreme Court.
The matter is expected to be listed within a month or so, he added.