In a statement, the Ministry of External Affairs said India was not surprised that Khan refused to acknowledge the attack on India's security forces in Pulwama as an act of terrorism, adding his offer to investigate the attack if provided proof is a "lame excuse".
"Disclaiming any link between the terrorist attack and Pakistan is an oft-repeated excuse by Pakistan. The Pakistani Prime Minister has ignored claims made by the Jaish-e-Mohammad, as well as by the terrorist, who perpetrated this heinous crime," the MEA said.
"It is a well-known fact that Jaish-e-Mohammad and its leader Masood Azhar are based in Pakistan. These should be sufficient proof for Pakistan to take action," it said.
Days after the terror strike by Pakistan-based Jaish-e-Mohammad (JeM) terror group killing 40 CRPF personnel, Prime Minister Narendra Modi said security forces have been given free hand to avenge the dastardly act.
In a video message, Khan responded to the Indian allegations on Pakistan's involvement in the attack in Kashmir last Thursday.
"The Prime Minister of Pakistan has offered to investigate the matter if India provides proof. This is a lame excuse. In the horrific attack in Mumbai on 26/11, proof was provided to Pakistan. Despite this, the case has not progressed for the last more than 10 years.
Likewise, on the terror attack on Pathankot airbase, the MEA said, there has been no progress.
"Promises of 'guaranteed action' ring hollow given the track record of Pakistan," the MEA said.
It said Pakistan claimed to be the greatest victim of terrorism but this is far from truth.
"The international community is well acquainted with the reality that Pakistan is the nerve centre of terrorism," the MEA said.
It also came down hard on the Pakistan prime minister for his comments linking India's upcoming general elections to the narrative of blaming Pakistan. He said it would make it easier to get votes from the masses.
"It is regrettable that the Pakistani Prime Minister has insinuated that India's response to the terrorist attack is determined by the forthcoming general election," the MEA said.
Rejecting the "false allegation", the MEA said India's democracy was a model for the world which Pakistan would never understand.
"We demand Pakistan to stop misleading the international community and take credible and visible action against the perpetrators of Pulwama terrorist attack and other terrorists and terror groups operating from areas under their control," it said.
On Khan's reference to build a new Pakistan, the MEA said, "In this 'Naya Pakistan,' ministers of the current government publicly share platforms with terrorists like Hafeez Saeed who have been proscribed by the United Nations."
"Pakistan's Prime Minister has called for dialogue and expressed his readiness to talk about terrorism. India has repeatedly stated that it is ready to engage in a comprehensive bilateral dialogue in an atmosphere free from terror and violence," the MEA said.
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