Keeping the door open for the rebel leader to return, it said that he had been given many important responsibilities but made it clear that the party is bigger than "ambition of one person".
The Congress' reaction came after Mr Vaghela claimed that he was expelled from the party "24 hours back" but made it clear that he had no plans to join the BJP or any other political party.
"Neither has the Congress taken any disciplinary action against him nor has he been expelled from the party. Both these facts are entirely incorrect," Congress chief spokesperson Randeep Surjewala said.
He said the party respected Mr Vaghela as it had entrusted him with important responsibilities and positions from time to time and hoped he would continue to work for the Congress despite quitting from his posts.
"For the party is bigger than individuals. Each one of us needs to understand that interests of the party and its ideals are bigger then ambition of one person. We sincerely hope that he'll continue to work for the party despite his decision to quit party posts," the Congress leader said.
Mr Surjewala said the Congress was not representative of individuals but ideology and principles. Party chief Sonia Gandhi, vice president Rahul Gandhi and crores of Congressmen and women are not fighting for power alone but for social justice, progress and a just, humane society against autocracy of the few, he said.
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