Internal dissent emerged and the party split in late 1923, when C. R. Reddy resigned and formed a splinter group and allied with Swarajists who were in opposition. The party won the second council elections in 1923 (though with a reduced majority). On the first day (27 November 1923) of the new session, a no-confidence motion was defeated 65–44 and Ramarayaningar remained in power until November 1926. The party lost in 1926 to Swaraj. The Swaraj party refused to form the government, leading the Governor to set up an independent government under P. Subbarayan.