Here are the latest developments:
A massive health crisis has loomed over the capital, with thousands of tons of waste rotting on roadsides in the sweltering summer heat in East Delhi as the workers struck work. They haven't been paid in two months.
Arvind Kejriwal's AAP blamed the Centre. Taking a dig at Prime Minister Narendra Modi AAP leader Sanjay SIngh said, "There is money to give to Mongolia, but none to pay to the safai karamcharis (sanitation workers) from Mangolpuri."
But Satish Updhayay, who heads the BJP in Delhi, said, "The Centre has released the money, they are trying to propagate falsely that Centre has not released the funds."
On Monday, Mr Kejriwal had met the sanitation workers and announced that his government would release money for the pending salaries for now, but that the civic bodies were responsible for further payments. "513 cr were released yesterday for MCD salaries...It was promised by CM to MCD employees," tweeted Deputy CM Manish Sisodia today.
As the stink grew around the garbage so did the politics. Rahul Gandhi met the protesting workers today and attacked both the Centre and the state government. "You go to the Delhi Government, it says Centre is responsible. You go to the Centre, it says Delhi Government is responsible. These are all excuses," he said.
"I will take your responsibility... Call me whenever you need. I can be here for 15 days if you want," Mr Gandhi said, joining the politics of the garbage crisis, so far a tug-of-war between the AAP, which rules Delhi and the BJP, which controls the civic bodies.
In the assembly elections held in February this year, the Congress was wiped out. The party holds not a single seat now in Delhi, which it ruled for 15 straight years till 2013, and Mr Gandhi's efforts are also seen as an attempt to rebuild its support base in the capital.
Arvind Kejriwal's Aam Aadmi Party swept the February elections winning 67 seats, but complains that it is unable to govern effectively since the Centre, through the Lieutenant Governor, has control of key functions.
Lt Governor Najeeb Jung announced that Rs. 493 crore would be released to the civic bodies today itself to cover the dues. While sympathising with 'safai karamcharies', he appealed to them to rejoin duty. "This will be in the greater interest of the citizens of this great city that belongs to all of us," he said.
Today the Delhi High Court directed the state government to release money for the workers' salaries by June 15. It also issued notices to the Delhi government, Worker's union and the East Delhi Municipal Corporation while hearing the Public Interest Litigation.
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