In 1934, Congress had organised its next session in Patna. Acharya Narendra Dev invited everyone who follow the practice of socialism and established ‘All India Congress Socialist Party.’ Jai Prakash Narain was made the organising minister. The party had opened many branches all over the country. Many famous leaders joined this party gradually recognising its importance. Gandhiji also welcomed this party believing that it will continue to maintain the party’s unity.
Vallabhbhai was even more intolerant of the new congress Socialist Party that had been formed in his absence. In dealing with the problem of socialists Gandhiji and Vallabhbhai were at one. Neither could tolerate either the theory or practice of socialism; Vallabhbhai however was more ruthless than Gandhiji in his attacks on all socialists. His political support came from areas and groups where vested interests had to be protected. Socialists all over the country were pledging themselves to the destruction of vested interests. Socialists leaders were trying to persuade the general Congress to plan Congress strategy according to the socialists programme. They had decided to permeate the Congress body and the Congress strongholds like Bombay and Gujarat in order to undermine the strength of the right wing.

In his first interview after his release, Vallabhbhai made it clear that if the new Congress Socialist Party lowered the prestige of the Congress in any way he would oppose it vehemently. Unity and discipline were of great importance at that juncture. Moreover, Congress owed something to those who had made sacrifices in supporting the party. As socialists steeped up their propaganda, Vallabhbhai increased the intensity of his opposition till it bordered on becoming an obsession. In almost every speech he criticized the socialists for their ‘foolish-talk’ about straightening out the Congress ideology. Peasants could not benefit by reading Lenin or by indulging in academic discussions; socialists should go to the rural areas and work among the peasants as he (Vallabhbhai) had done. Vallabhbhai said that he spoke……as a man of the people who had all his life lived in closest touch with the conditions in village life, I know what reorganising of the peasants and workers means. Let our socialists friends show me a single village or a single union of industrial workers which they have organised to their satisfaction according to their ideas.
Throwing yet another challenge to the socialists who wanted to replace the Charkha in the Congress flag with the tricolour, Vallabhbhai said—It is no use condemning Congress and its leaders for doing this and committing that. Let them accompany me for Cape Camorin to Kashmir, work amongst the peasants, handle tractors, and examine the comparative value of all their theories imported from the west.
More than the socialist general encroachment into the Congress organization Vallabhbhai resented their intrusions into his political domain of Gujarat. Presiding over a special meeting of the Gujarat PCC on 3rd October 1934, Vallabhbhai pointedly told socialists that he would not tolerate any interference from them in Gujarat where he had dedicated his life to win Swaraj. Even if Gandhiji left the Congress, he said, he (Vallabhbhai) would not leave the Gujarat PCC. He had commitments to Gujarat and had to rehabilitate all the farmers who had been ruined during the Civil Disobedience movement. At a public meeting in Ahmedabad he gave a stern warning that, unlike Gandhiji, who was kind even to his enemies, Vallabhbhai would deal tough with anyone who came in his way and tried to undo what Congress had done.
Rejecting Vallabhbhai’s spinal claim over Gujarat, the socialists declared—
Whether Mr. Vallabhbhai will tolerate the socialists or not, the socialists certainly are not going to be elbowed out by such heroics. They know what they are about and inspite of Mr. Vallabhbhai the socialists will carry out their programme in Gujarat, as in other parts of the country.
It became clear as time went on that as Vallabhbhai hardened his attitude to the socialists, the Socialists intensified their campaign against Vallabhbhai. Moreover, his intolerance of socialists increased and influenced many of his political decisions, particularly those that pertained to the organisation and personnel of the Congress party.