Central rule with the assembly being kept in suspended animation was one of the options listed by Jung in his report submitted to the President after having wide ranging consultations with Bharatiya Janata Party, the single largest party, followed by the Aam Aadmi Party, official sources said on Monday.
Congress has offered unconditional support to the AAP to form a government.
Without disclosing the contents of the report, Union Home Minister Sushilkumar Shinde told reporters that the Lt Governor has given a few options.
"We are examining the report legally," he said.
Sources said the Lt Governor in the report has communicated that none of the party is in a position to form the government and so far there is no clarity on government formation. The report also noted that AAP leader Arvind Kerjriwal sought more time for further consultations.
Hence, the Lt Governor has said, the President's rule should be imposed in Delhi by keeping the assembly under suspended animation till any party or a combination of parties is able to form the government, sources said.
If no party comes forward to stake claim to form the government, the President's rule can be imposed in the next two days, sources said.
"The meeting of the Union Cabinet, which will recommend imposition of President's rule by keeping the assembly under suspended animation, can be convened at a short notice of two hours, a source said.
BJP (31) along with its ally Akali Dal got 32 seats in a House of 70 and was followed by AAP with 28 seats.
Meanwhile, sources said, the President has notified the constitution of the new Delhi assembly on December 10.
The BJP has already declined to form the government in the national capital citing "lack of clear mandate".
AAP chief Arvind Kejriwal met the Lt Governor on Saturday and sought time saying they would like to know answers from BJP and Congress before they stake claim for the government-formation.
AAP, which was invited by Jung to discuss government formation, set some new conditions for Congress and BJP before it can decide on taking their support to form a government.
In his meeting, Kejriwal had given to Jung the copies of the letters he had written to Congress president Sonia Gandhi and BJP president Rajnath Singh, seeking their views on a list of 18 issues that included ending VIP culture in the capital, audit of electricity companies and removal of MLA local funds scheme.
The Congress on Monday replied to AAP's letter seeking its views on 18 issues. The party said 16 of the 18 issues need just administrative decisions and can be implemented by Delhi government without coming to Parliament or assembly.
Congress has already extended unconditional support of its eight MLAs to AAP for forming the next government.
Image: Visitors seen around Delhi's India Gate
Photograph: Reuters
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