When the Congress Working Committee was reorganised, at Sardar Vallabhbhai Patel's insistence Desai was included in the committee. In November 1934, Desai was elected to the Central Legislative Assembly from Gujarat. The Government of India Act 1935, which allowed provincial autonomy, raised the question whether the Congress should participate in the legislatures. Bhulabhai among others supported Congress participation, pointing out the greater autonomy and political rights granted to Indians. When the Congress entered the Central Assembly, he was elected the leader of all elected Congressman, thus becoming the majority leader. He built much respect and standing by forcefully leading the first elected representation of the Congress. At the onset of World War II, the Congress opposed the arbitrary inclusion of India and Indian soldiers in the war effort. Bhulabhai Desai considered it important to use the Central Assembly to clarify the Congress attitude to the world. Bhulabhai addressed the House on 19 November 1940, making a strong plea which read "...unless it is India's war, it is impossible that you will get India's support." Participating in the satyagraha initiated by Mohandas Gandhi, he was arrested on 10 December, under the Defense of India Act and sent to Yerwada Central Jail. He was released from prison in September 1941 on grounds of poor health, which also affected his participation in the Quit India movement. Desai-Liaquat pact While Mohandas Gandhi and the entire Congress Working Committee had been arrested during the Quit India movement, from 1942 to 1945, Desai was one of few Congress leaders free. While pressing demands for the immediate release of political prisoners, Desai began secretive talks with Liaquat Ali Khan, the second-most important leader of the Muslim League. However this assertion has been seriously challenged by other eminent people like Sir Chiman Lal Setalwad who have stated that Gandhi had full knowledge of the ongoing negotiations. It was their intention to negotiate an agreement for a future coalition government, which would enable a united choice for Hindus and Muslims for the independent Government of India. In this deal, Liaquat gave up the demand for a separate Muslim state in turn for parity of Muslims-to-Hindus in the council of ministers. Conceding the League as the representative of Muslims and giving a minority community equal place with the majority Hindus, Desai attempted to construct an ideal Indian alliance that would hasten India's path for freedom while ending the Quit India