Whether Delhi will have a government in place soon will be decided by Lieutenant Governor Najeeb Jung, who will hold talks with various parties over the next few days. This comes after President Pranab Mukherjee agreed that the possibility of a "popular government" should be explored in the capital, which has been under president's rule since February.
Here are 10 developments in this story:
Mr Jung today met Home Minister Rajnath Singh and informed that he would begin consultations with political parties.
The Centre on Tuesday told the court that the president had agreed to Mr Jung's suggestion that the largest party - the BJP - should be given a chance to form a government and prove its majority in a floor test.
The Supreme Court on Tuesday criticized the Lieutenant Governor and the Centre and said, "In a democracy, President's Rule cannot go on forever. The Lieutenant Governor should have taken a decision on government formation at the earliest instead of waiting for months."
The Centre said the court cannot dictate to the president when to end central rule and call for fresh polls, arguing that President's Rule in Delhi is valid till February. The court will hear the case again tomorrow.
The BJP, along with its ally Akali Dal, has 29 legislators and will need five more for a majority in the assembly of 67; three BJP legislators contested and won the national election in May, reducing the strength of the 70-member house. The party will strive to retain those seats in by-polls to be held on November 25.
The BJP, sources say, is preparing for three possibilities; the court dissolves the assembly and calls for fresh polls; the party is invited to form a government; the party waits for the assembly by-poll results.
Sources say the BJP's top leaders had cleared trying to form a government. "We will take a decision at an appropriate time once we are invited," said Delhi BJP chief Satish Upadhyay on Tuesday.
Arvind Kejriwal, the chief of the Aam Aadmi Party (AAP), was Chief Minister for 49 days till February 14, when he quit in a huff over his Jan Lokpal Bill. AAP, which placed second in its debut election, had taken support from the Congress to form a government.
Mr Kejriwal accuses the BJP of trying to buy his party legislators and avoiding polls for fear of losing. "What has the Lieutenant Governor doing all these months?" questioned Mr Kejriwal, responding to Mr Jung's consultations with parties.
Both the Congress and AAP favour another election in Delhi. Mr Kejriwal said the Lieutenant Governor should call an all-party meeting to decide on Delhi's future.
