The Union Cabinet on Wednesday recommended revocation of President's Rule in Arunachal Pradesh.
The move comes a day after the Supreme Court refused to restrain the Governor from swearing-in a new government in the state.
The central rule was imposed in Arunachal Pradesh on January 26.
On Monday, thirty one MLAs, led by Congress dissident Kalikho Pul, called on the Governor to stake claim for forming the next government in the state.
Pul was accompanied by nineteen Congress MLAs along with eleven Bharatiya Janata Party legislators and two independent members.
This led the Congress to move the Supreme Court seeking an order that no new government formation be permitted and status quo maintained.
However, the apex court refused to pass an interim order restraining the Governor from swearing in a new government in Arunachal Pradesh.
The protest by Congress led by Pul led to a political crisis in the state that finally led to imposition of President's Rule on January 26.
Former Chief Minister Nabam Tuki reportedly has the support of 26 MLAs in the 60-member Assembly.
Congress, which had 47 MLAs in the 60-member Assembly, suffered a jolt when 21 of its lawmakers rebelled. Eleven BJP MLAs and two independents backed the rebels in the bid to upstage the government. Later, 14 rebel Congress MLAs were disqualified by the Speaker.
The Supreme Court, which is considering pleas against imposition of President's rule is hearing petitions seeking examination of constitutional schemes on the scope of discretionary powers of the Governor.
Earlier, Congress has urged President Pranab Mukherjee not to take any action over withdrawal of President's Rule in Arunachal Predesh if Centre makes any recommendation in this regard.
Congress leader Ghulam Nabi Azad met President Mukherjee at Rashtrapathi Bhawan and submitted a memorandum in this regard.
Meanwhile, Dissident Congress MLA Kalikho Pul and his supporters are meeting with Governor J.P. Rajkhowa in Itanagar on the issue of staking a claim to form the next government in the state.
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According to available information, the green signal is yet to be given by the Governor's office to Pul.
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