Notably, Vaghela has gone abroad and 'unfollowed' Rahul Gandhi on Twitter recently which triggered such speculation.
Party's state unit chief Bharatsinh Solanki said Vaghela has gone abroad due to "personal reasons". He will be back by May 22-23 after which the party leadership will sit down to formulate its strategy for the state assembly polls.
"This time people want to teach a lesson to the BJP. The way we got majority in the panchayat elections in the state, we will get majority in the Assembly elections as well," he said.
Solanki alleged that "the BJP tried to create a rift in the Congress during the panchayat elections by using all means like government machinery, money, incentives, but it could do nothing."
"The BJP was defeated in the local (panchayat) elections, which is why it wants to divert the attention by spreading rumours," the state Congress chief said.
"Its surgical strike, demonetisation move, were all meant to divert the attention from real issues. People are not happy and like Punjab, the Congress will win Gujarat for sure, which is why the BJP is trying to spread lies," he said.
Vaghela recently unfollowed Congress vide president Rahul Gandhi and other party colleagues on Twitter.
However, the 77-year-old former chief minister later scotched speculation about returning to the BJP. He also indicated that he was not in the chief ministerial race and was not willing to contest the Assembly polls.
Vaghela had also skipped an event organised by the party's IT cell a few days back and his actions were seen as an indication of a possible rift in the party.