On February 2, 2026, the Supreme Court directed the Central government to form a tribunal within one month to solve the water dispute between Tamil Nadu and Karnataka over the Pennaiyar River. A bench led by Justice Vikram Nath said, "The Centre may place the complaint filed by Tamil Nadu before the tribunal upon its constitution." Tamil Nadu had approached the Supreme Court in 2018, accusing Karnataka of illegally building dams and diversion structures on the river. Tamil Nadu argued that Karnataka had no right to use Pennaiyar River water in a way that harms people in Tamil Nadu. The State said the water of an inter-State river is a national asset and no one state can claim exclusive rights. Tamil Nadu also said the 1892 agreement on sharing the river water is "valid and binding" for both states. The State added that the river includes streams, tributaries, and other water sources connected to it. Tamil Nadu pointed out that the major tributary, Markandeyanadhi, which flows through both Karnataka and Tamil Nadu, is covered by the 1892 Agreement. The State said any new construction blocking Markandeyanadhi's flow is governed by this agreement. Tamil Nadu rejected Karnataka's claim that it can freely build dams or diversion structures on the Markandeya river, calling it "wholly untenable." The Centre must now notify the tribunal to handle the case and help settle this long-standing dispute.