The Meghalaya cabinet went into a huddle and decided to impose administrator rule in the council for six months.
"The chief minister convened a special cabinet meeting today and we decided that with no options left we have to put the JHADC under animated suspension and call for administrator rule from today since the council failed to pass the budget and it would lead to financial crisis," District Council Affairs Minister H D R Lyngdoh said.
"A change in alignment of the Members of District Council (MDC)'s has surfaced and until it is resolved the council shall be under animated suspension for a minimum period of six months."
A Rs 98.97-crore budget estimated for 2011-12 was tabled in the council on the first day of the session on March 22, and was originally listed for discussion and subsequent approval on March 23.
But, with the two independent members of the House moving a no-confidence motion against the Chief Executive Member (CEM) Lamdibok Sumer, the chairman was forced to adjourn the House.
Sumer had assumed charge as the CEM of JHADC four months ago by replacing Hambertus Nongtdu - both from the Congress which has a support of 16 members in the 30-member council.
Last Wednesday, Nongtdu and an independent member moved separate resolutions against Chairman Obil Kyndait for not allowing the no-confidence motion.
The Chairman, who was supposed to conduct a general discussion on the budget, was forced to prorogue the session. Nongtdu claims to have the support of 14 Congress members.
The Opposition has 12 members - eight from United Democratic Party and four NCP.