Vaghela, head of Gujarat Congress campaign committee for the 2012 assembly elections, polled 88,641 votes while his opponent Dabhi secured 82,044 votes.
After his victory, Vaghela said though he is happy on winning the seat, he is sad that the party has lost.
The former Gujarat Chief Minister said he accepts the verdict of the people in the state.
"We will work hard and try to convince the people that Congress is the best option," he told reporters.
Vaghela's son Mahendrasinh also won from Bayad constituency in Sabarkantha, on a Congress ticket defeating BJP rival Udeisinh Jhala.