India refused to accept the Asia Cup trophy in the final because the trophy was to be presented by Mohsin Naqvi, who is the President of the Asian Cricket Council (ACC), Chairman of Pakistan Cricket Board (PCB), and also Pakistan’s Interior Minister.
The Indian Cricket Board (BCCI) stated that they didn’t want to take the trophy from Mohsin Naqvi because his political role and affiliation with Pakistan.
During the tournament, relations between the two sides were already in tense. Indian players had refused to shake hands with Pakistan players in multiple matches.
The Indian team wanted someone else to give them the trophy, but the request was denied. The presentation ceremony was delayed by over an hour. During the delay both teams and officials were negotiating and confusion over how to proceed. Mohsin Naqvi was seen walking away with the trophy.
The Indian Post 