Shiv Sena Executive President Uddhav Thackeray on Tuesday refused the take responsibility for the party's defeat in the prestigious Malvan assembly by-election saying that such defeats were not new and the party had taken them in its stride.

• Rane wins Malvan, Sena loses deposit

"The responsibility lies with those who spread terror in the constituency, depriving people of exercising their franchise in a free an fair manner," Uddhav told reporters at the Thackeray family residence Matoshree in suburban Bandra.

Uddhav accused victorious Congress nominee and former Sena leader Narayan Rane of 'unleashing a reign of terror in Malvan.'

"We gave him a free hand in the area for the last 15 years. How could you expect us to undo its consequences in only 15 days of campaigning," he queried.

About Sena supremo Bal Thackeray's response on the results of the by-elections, Uddhav said, "He (Thackeray) also feels the same and that a 40-year-old party should not be bogged down by such developments."

Asked if there would be any basic changes in the party's organisational set-up, Uddhav said, "You keep watching...and see what happens next."

When pointed out that Rane had demanded his resignation in the wake of the Sena's drubbing in Malvan, he said, "Let him first ask his party chief Sonia Gandhi [Images] to resign following Congress' performance in Bihar polls".

Uddhav alleged that the Malvan by-election was not conducted in a free and fair manner.

"There was an atmosphere of terror in the area," he said, adding that the Sena had already lodged complaints about the role of the district administration and police in the conduct of the by-elections.

"The district Collector, who is wife of the SP there, was appointed a day before the polls were announced. Was it a
coincidence," he asked.

Uddhav said the he was 'more shocked' by the results of by-elections to the Mumbai North West Lok Sabha seat, where Congress nominee Priya Dutt defeated Sena's Madhukar Sarpotdar.

"The Sena workers had worked tirelessly, not caring for their well-being, after the July 26 deluge in Mumbai. Still, we lost the poll. There is a big lesson in this for us," he said.

The Sena leader said the party would approach Chief Election Commissioner B B Tandon to complain about Rane's "terror" tactics in Malvan. "We are ready to fight terrorism with terrorism," he said.

"The Malvan defeat does not mean that our ties with the Konkan region have ended. We will keep going there, irrespective of Tuesday's result," he added.