In her second tenure, Kakodkar faced rebellion within her party after an initially peaceful tenure of about one year. First-time MLAs Dilkush Desai and Dayanand Narvekar initiated a rebellion within the M. G. Party demanding that the party's Executive Body be scrapped and fresh elections be held to the body. Subsequently, they demanded the resignation of Chief Minister Kakodkar. As a result of their anti-party activities, the M. G. Party's Executive Body served a show-cause notice upon MLAs Desai and Narvekar. When the M. G. Party's Executive met on 21 January 1979, Chief Minister Kakodkar stated how both the MLAs had engaged in anti-party activities since June 1978. Kakodkar also spoke about the manner in which MLAs Dilkush Desai and Dayanand Narvekar made irresponsible remarks, took an anti-government stance in the Legislative Assembly and engaged in attempts to destabilise the government.