The senior Congress leader said the Badal dispensation's move also amounts to "disobeying" the country's judicial system.
However, he assured the BJP-led Haryana government that Congress would "cooperate" with it on water-sharing issue as a responsible political outfit.
"The decision of Punjab government to denotify the land acquired for constructing SYL canal is illegal and deserve strong criticism," Hooda said in a statement here.
"It is right that the land acquired for SYL canal is with Punjab government but it was Haryana government which paid the compensation amount," Hooda claimed asking how could Punjab government have taken the decision "unilaterally."
"Because with such decision, states will not only start stopping water passing through their areas to other states but will also consider putting up blockades at roads in order to preserve them as their right," Hooda said.
"Today, SAD-BJP is ruling in Punjab and NDA at the Centre. It is important for Haryana government to take this matter as a challenge and seek the Centre's intervention in water-sharing issue," he said.
