Government decided to bring the Ordinance after failing to get a Bill to this effect passed in Parliament during the recent Monsoon Session.
The ordinance will come into effect from July 10 this year once the President gives his assent.
The Supreme Court had on July 10 ruled that an MP, an MLA or an MLC would stand disqualified immediately if convicted by a court for crimes with punishment of two years or more. Government moved the Supreme Court for a review earlier this month which was rejected.
Former Rail Minister and RJD chief Lalu Prasad too faces the prospect of losing his Lok Sabha membership if found guilty in a fodder scam case to be decided on September 30.
The Ordinance, which is in lines with the Bill, states that a convicted MP or MLA will not be disqualified if an appeal is filed within 90 days and the court stays the conviction and the sentence.
"We have only done what the SC had said. In fact we have gone a step further...The measure will act as an impediment for those convicted," Law Minister Kapil Sibal said here after the Ordinance was approved by the Union Cabinet.
If a lawmaker fails to get a stay on the sentence or the conviction within 90 days, he or she will stand disqualified.
Convicted persons cannot contest polls as per the R P Act.
Attacking the government for the ordinance, AAP said it exposes the intentions of the political class which has "stooped" to a new low to protect the corrupt.
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