After the 11th round of counting, Dhakad surged ahead of BJP candidate Shakti Singh Hada, who was leading in initial trends, and emerged as the winner.
Dhakad garnered 70,146 votes, defeating Hada by 12,976 votes. Hada had secured 57,170 votes, Election Commission sources said.
Rajasthan Congress Chief Sachin Pilot said Chief Minister Vasundhara Raje should resign on moral grounds.
"After failing to appease voters over religion, the BJP tried polarising over caste...It is a victory of people, party workers and all leaders," he said at a press conference.