Modi, a BJP leader, won from the Maninagar assembly constituency on Ahmedabad's outskirts, defeating Bhatt by more than 70,000 votes.
Asserting that she would continue to work for the people of Gujarat and for truth, Bhatt rebuffed allegations that she was made a scape-goat by the Congress.
"There is not much development in Maninagar and many are afraid to speak the truth," said Bhatt, adding that her fight was ideological.
She said her defeat would have no effect on the couple's campaign against Modi.
"I'll continue to be in politics and keep fighting against Modi. I have always fought against injustice and fear and will continue to do so," she said.