Patil said Bihar Governor Buta Singh, in a report to the government, had said that unconstitutional and illegal steps were being taken by political parties to win over legislators.
"Since the situation was worsening in the state, the Union Cabinet accepted the recommendations of the Bihar governor and recommended dissolution of the assembly to the President," he said.
Patil said the President, who is in Russia [ Images ] on a four-day visit, "accepted and approved the decision".
He said the governor had written two letters to the Centre about horse-trading.
Also read: Bihar on high alert
In the first letter, the governor had brought the issue of horse-trading to the notice of the Centre a few days back but had not suggested dissolution of the assembly.
"In the second letter (on Sunday), the governor recommended dissolution of the assembly since unconstitutional, illegal and unexpected developments were taking place in the state," he said.
Patil said the governor's report was similar to the information available with the Centre. This was corroborated by some of the political leaders in the state, Patil said.
To prevent the political situation from "becoming polluted", the government accepted the recommendations, he said.
About fresh elections, Patil said, "The ball is now in the court of the Election Commission, which has to conduct the elections in the state."
In an obvious reference to Bharatiya Janata Party-led National Democratic Alliance, Patil said, "One group in the state has been trying to indulge in horse-trading and winning over MLAs belonging to the other political group," he said.