In 1990, he came in the contact of Shankersinh Vaghela. He contested 1995 Gujarat assembly election on candidature of Bharatiya Janata Party (BJP). BJP won majority and formed government headed by Keshubhai Patel. In 1996, when Vaghela revolted and split BJP and formed Rashtriya Janata Party (RJP), he joined it. RJP formed minority government with support of Indian National Congress (INC) and Vaghela took oath as a Chief Minister. A year later lNC threatened to withdrew its support on 20 October 1997. A week later the compromise was reached as a change of Chief Minister. Vaghela stepped down and Dilip Parikh sworn in as a Chief Minister by governor Krishnapal Singh in 1997.