Patnaik was close to Indira Gandhi who took over the Congress Party in 1967. However, they clashed in 1969 over the Presidential election. He left the Congress and formed a regional party—the Utkal Congress. In the 1971 assembly poll, his party did reasonably well. Patnaik then re-established contact with his old friend Jayaprakash Narayan and plunged into the JP movement as it picked up momentum in 1974. When the Emergency was declared in 1975, Biju Patnaik was one of the first to be arrested along with other opposition leaders.