If he chooses to keep it in suspended animation, he can ask the BJP, which is the largest party in the Assembly, to form the government.
The AAP too has the option to return to power in case it is able to get adequate numbers, Solicitor General of India Mohan Parasaran said.
If that does not work out, he can dissolve the Assembly, implement Presidents Rule or call fresh elections.
The L-G has to consider the options before him. Possibly he may also consult the President, Parasaran said.
He said if no party was able to form the government, the capital would come under Presidents rule. The logical course, according to Parasaran, would be for the L-G to dissolve the Assembly and call fresh elections in a few days.
A former secretary general of Lok Sabha also said the next step was up to the discretion of the L-G.
There is very little set procedure as to what steps the L-G should take in a situation like this. He will have to explore all options to see who can form the government next or will have to recommend Presidents rule.
If the Assembly is kept in suspended animation or if Presidents rule is imposed, the administration of Delhi will fall on the L-G in consultation with senior officials as advisers.
The GNCTD Act has a provision for keeping the Assembly in suspended animation. But there is a time-limit on how long it can be kept in suspension without dissolving it, the former secretary general said.