The historic pond, a revered site for Hindus, is said to have depleted due to operations in the vicinity of several cement factories that have sucked out the underground water.
The three judge bench headed by Chief Justice of Pakistan Mian Saqib Nisar also sought the list of all those responsible for drying out the pond.
The bench summoned officials of Environmental Protection Agency (EPA) who had reportedly issued No Objection Certificate (NOC) to use the underground water.
"Why shouldn't this matter be referred to the National Accountability Bureau (NAB)," Justice Nisar asked.
During the hearing, the representatives of the factories appeared before the bench, and sought time to find a permanent solution to resolve the matter.
Top court seeks report on fabled Katas Raj Temples' pond drying up
Various proposals to resolve the issue were put forth, including spending Rs7billion to attain from River Jhelum the much needed water. The bench, however, expressed its dissatisfaction over the proposals.
These factories are exploiting the shield of national interest, the CJP remarked.
The top judge told the owners to pay a visit and witness the difficulties the residents of the area have to face owing to dearth of water.
Earthquake rehabilitation work in Mansehra
Separately, the top court expressed its dissatisfaction over the performance of the Earthquake Reconstruction & Rehabilitation Authority (ERRA) in rehabilitation work in Mansehra. The bench sought details of administrative expenditure of the authority.
The court also summoned secretary finance on April 25 to explain the failure to dispense funds for rehabilitation of the affected areas. Sessions' judge Mansehra submitted a report regarding the progress of work.
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