The India-Canada diplomatic row over the killing of Sikh separatist Hardeep Singh Nijjar escalated further on Tuesday with Ottawa attempting to link the Bishnoi gang with Indian government agents to carry out covert operations in that country and New Delhi stoutly trashing the charges.

As the ties between the two countries hit rock bottom, Canadian Foreign Minister Melanie Joly did not rule out imposing sanctions against India saying “everything is on the table”.

On its part, India strongly rejected attempts by Canadian authorities to link Indian agents with criminal gangs in Canada with official sources even saying that Ottawa’s assertion that it shared evidence with New Delhi in the Nijjar case was simply not true.

The sources also rejected Canadian Prime Minister Justin Trudeau’s allegations that India was engaging in activities including carrying out covert operations targeting Canadian nationals in his country.

At a press conference, Trudeau, pointing fingers at India on the Nijjar case, said Canada will never tolerate the involvement of a foreign government in threatening and killing Canadian citizens on Canadian soil.

On Monday, India expelled six Canadian diplomats and announced withdrawing its high commissioner from Canada after dismissing Ottawa’s allegations linking the envoy to a probe into the killing of Sikh extremist Nijjar.

Joly, replying to a question at Trudeau’s media briefing, did not rule out further action against India.

“So today was a really important step. When you look at what is available in our toolbox, expelling diplomats is one of the highest and toughest measures a country can take under the Vienna convention…Everything is on the table,” she said.

The ties between India and Canada came under severe strain following Canadian Prime Minister Trudeau’s allegations in September last year of a “potential” involvement of Indian agents in the killing of Nijjar. New Delhi rejected Trudeau’s charges as “absurd”.