Following his release, Deshpande returned to Goa and dedicated himself to supporting workers and marginalized communities. He organized labor unions at Mormugao Harbour, helping to secure significant rights and benefits for the workforce. He served as the Chairman of the Goa Dock Labour Union and worked with the
Mormugao Port Trust as a trustee. Additionally, he held leadership roles, including Convenor of the
Indian National Trade Union Congress in Goa and President of the Goa Taximen's Union and the Navjeevan Society. In the initial session of the
Second Goa Assembly,
Dayanand Bandodkar, who served as the
Chief Minister of Goa at the time, made the decision to remove Dattatraya Deshpande, along with
Raghunath Tople, Ganaba Dessai and A Kadkade, from their positions in the organizational wing of the
Maharashtrawadi Gomantak Party. This action took place on the first day of the assembly's session and marked their expulsion from the party. ==Death==