Punjab Chief Minister Bhagwant Mann has expressed strong opposition, calling the move a direct infringement on Punjab's rights. Chandigarh, he asserts, is an intrinsic part of Punjab’s identity, reflecting its cultural and historical significance. Mann and other Punjab leaders argue that Haryana’s construction project disregards longstanding promises, including assurances from the 1970 Indira Gandhi Award, which designated Chandigarh as Punjab’s capital while allocating funds for Haryana to develop its own.
Haryana Chief Minister Manohar Lal Khattar, however, insists that the project does not challenge Punjab’s rights but rather addresses Haryana’s administrative needs. Haryana leaders emphasize their equal claim over Chandigarh, highlighting its designation as a shared Union Territory. They argue that the city’s facilities must accommodate the needs of both states, with Haryana’s new assembly being part of a broader plan to enhance governance infrastructure.
The central government’s role has further complicated the matter. The Union Ministry of Environment recently cleared ecological restrictions on land in Panchkula, paving the way for Haryana’s project. This decision follows a land exchange agreement, with Haryana acquiring 10 acres in Chandigarh in return for transferring land near Mansa Devi Complex in Panchkula. Punjab leaders, however, criticize the arrangement, claiming it undermines their interests and contravenes past commitments.
Chandigarh's history as a point of contention stems from its establishment as a Union Territory in 1966, intended as a temporary arrangement until a permanent allocation could be decided. Despite multiple agreements, including the 1985 Rajiv-Longowal Accord, which proposed transferring Chandigarh exclusively to Punjab, implementation has been stalled, perpetuating the dispute.