In 182 members Gujarat Legislative Assembly, there were only 46 RJP members while there were 44 INC, 76 BJP and 15 Independents members. Thus minority government by outside support of INC resulted in instability. He submitted his resignation to Gujarat Governor Krishnapal Singh and called for fresh assembly election on 5 January 1998 but continued as a caretaker Chief Minister till 4 March 1998. He lost to the BJP's Bharat Pandya in Dhandhuka by a margin of over 15000 votes in 1998 assembly election while RJP won only four seats. BJP regained power with 117 seats out of 182 seats assembly.