In the BJP's second list announced two days ago, nine incumbent MLAs including Chauhan were dropped and replaced with new faces.
For the Chotila Assembly constituency, Chauhan, who was last year appointed parliamentary secretary by Chief Minister Vijay Rupani, was replaced by Jinabhai Dedvariya.
"A man who worked against the party's interest and tried to break it in the last five years has been given mandate to contest election. His image among the people is bad, and I will not be able to work to get him elected," Chauhan told PTI.
"Members of the Koli community to which I belong are aggrieved and angry at the decision of the party to offer mandate to a man who worked against the interest of the party, and they have asked me to resign. I will offer my resignation to the chief minister and (state) party president tomorrow," Chauhan said.
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"Dedvariya belongs to the Koli community but he had only managed to get 14 votes in the Panchayat election that he contested recently. It is hard to understand why a candidate like him should be made to contest election on party ticket," Chauhan said.
"I have decided to resign and will send my resignation letter to the chief minister's office and party's office through fax," he said.
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