The stalwart of Gujarat politics announced his plan to break ranks with the Congress, which he had joined two decades back after quitting the BJP, at a rally of his supporters held here to mark his 77th birthday.
He also announced that he would immediately resign as the Leader of Opposition in the Gujarat Assembly and give up his membership of the House after the Rajya Sabha polls in the state scheduled for August 8.
The Congress candidate in the poll, Meira Kumar, could garner only 49 votes against the party's strength of 57 in the state Assembly.
At the outset of the rally, Vaghela said he was expelled from the Congress "24 hours back".
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Keeping his cards close to his chest, the veteran leader refrained from spelling out his future plans.
The former chief minister has been at loggerheads with the state Congress leadership, which refused to accede to his demand that he be projected as the chief ministerial face of the party in the Gujarat Assembly polls due later this year.
Though Vaghela did not reveal his future plans, speculations are rife that the veteran leader might float a political front against the BJP and the Congress.