President’s Rule : Grounds of Imposition : Article 356 empowers the President to issue a proclamation if he is satisfied that a situation has arisen in which the government of a state cannot be carried on in accordance with the provisions of the Constitution . Notably, the president can act either on a report of the governor of the state or otherwise too (i.e., even without the governor’s report). Article 365 says that whenever a state fails to comply with or to give effect to any direction from the Centre , it will be lawful for the president to hold that a situation has arisen in which the government of the state cannot be carried on in accordance with the provisions of the Constitution. Hence statement 1 is correct. Parliamentary Approval and Duration : A proclamation imposing President’s Rule must be approved by both the Houses of Parliament within two months from the date of its issue . Hence, Statement 2 is not correct . However, if the proclamation of President’s Rule is issued at a time when the Lok Sabha has been dissolved or the dissolution of the LokSabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided the Rajya Sabha approves it in the meantime. If approved by both the Houses of Parliament, the President’s Rule continues for six months . It can be extended for a maximum period of three years with the approval of the Parliament, every six months . Consequences of President’s Rule : S/He can take up the functions of the state government and powers vested in the governor or any other executive authority in the state. S/He can declare that the powers of the state legislature are to be exercised by the Parliament . S/He can take all other necessary steps including the suspension of the constitutional provisions relating to anybody or authority in the state.