It seems to be a moral victory for the Sheila Dikshit-led Congress government.
If sources in the Ministry of Home Affairs are to be believed, any decision taken by the Delhi cabinet on transferred subjects will be final and the Lieutenant Governor will have to approve it.
Sources said the inference has been made by the Ministry of Home Affairs (MHA) on the advice received from the solicitor general.
The inference, said officials, will also put to rest the controversy between the Delhi Cabinet and Lieutenant Governor (L-G) Tejendra Khanna on the circle rates issue, that rocked power corridors in November 2010.
Sources said the Delhi cabinet's decision to increase circle rates — which determines the minimum revenue the government gets on sale of properties — by 100% will now prevail over objections raised by L-G Khanna.
Sources said the MHA has conveyed to the Delhi government that the L-G's role on transferred subjects is only advisory and the state government has the right to take a final decision.
Sources said the MHA's communication will also give greater autonomy to Dikshit's government.