The union cabinet, headed by Prime Minister Narendra Modi, met here on Saturday evening to discuss all possibilities, including President's Rule, in the hill state of Uttarakhand.
The cabinet meet was called after a BJP delegation met President Pranab Mukherjee and sought his intervention to dismiss the state government.
Earlier in the day, Congress rebel legislators released a sting video of Chief Minister Harish Rawat which, they alleged, showed him indulging in horse-trading to save his government.
The sting showed the chief minister allegedly offering money to legislators to vote for his government in the vote of confidence mandated by Governor K.K. Paul before March 28.
Releasing the video, rebel Congress lawmaker Harak Singh Rawat said the chief minister was trying to bribe the nine rebel Congress legislators as well as as few of the Bharatiya Janata Party (BJP). He also alleged that the rebels have been receiving life threats.