Jharkhand Governor Syed Ahmed is understood to have recommended President's rule in the state by keeping the Assembly under suspended animation.
The recommendation was made in his report to the Centre on the political situation in the wake of the resignation of Chief Minister Arjun Munda who also sought dissolution of the Assembly after JMM withdrew support to his Government, sources said.
"I have received the preliminary report from the Jharkhand Governor. I will go through it. Wait for sometime for any decision," Union Home Minister Sushilkumar Shinde told reporters without giving details.
Munda had resigned yesterday and his cabinet recommended dissolution of the Assembly.
The present political crisis erupted when BJP's ruling coalition partner JMM, in a letter to the Governor, formally withdrew its support to the 28-month-old government pushing it into a minority.
In the 82-member state assembly, BJP and JMM have 18 members each. The Munda government had the support of six members of All Jharkhand Students' Union, two of JD (U), two independents and one nominated member who has voting right in a trial of strength.
Opposition Congress has a total of 13 members, Jharkhand Vikas Morcha(P)11 and RJD 5 in the assembly. CPI-ML(L), Marxist Coordination Party, Jharkhand Party (Ekka), Jharkhand Janadhikar Manch and Jai Bharat Samta Party have one member each besides an independent.