Both Pranab Murkherjee and the US are telling the truth
Knickerwallahs point out that 1-2-3 Agreement is over-ridden by the Hyde Act. For one thing, an international treaty over-rides national laws. Even for argument sake the reverse holds true, what does the 1-2-3 Agreement say:
Article 2, Para 1 of the 123 agreement text released on August 3, 2007 clearly states:
"The Parties shall cooperate in the use of nuclear energy for peaceful purposes in accordance with the provisions of this Agreement. Each Party shall implement this Agreement "in accordance with its respective applicable treaties, national laws," regulations, and license requirements concerning the use of nuclear energy for peaceful purposes."
So there is no mention of Hyde Act specifically. Only indirectly through "national laws". But this mention of "national laws" is mutual. This means if Hyde Act is a domestic law of the US, we can have a law exactly reverse of the Hyde Act. In a dispute, we are bound by our national laws while the US is to theirs creating a gridlock.
So the argument of Hyde Act is only a bogey used by commies and Knickerwallahs to confuse the public