Shah's political career, which had declined after his arrest in 2010, revived after the BJP's victory in the 2014 general election. In Uttar Pradesh, where Shah was the in-charge, the BJP and its allies won 73 out of 80 seats. Shah had been made in-charge of the BJP's campaign in Uttar Pradesh on 12 June 2013, less than a year before the elections. Since February 2012, Shah had spent considerable time in Uttar Pradesh, where he tried to understand the reasons for the Samajwadi Party's victory in the 2012 UP Assembly elections. Shah realized the voters were dissatisfied with the Samajwadi Party, which he believed had failed to keep its election promises after the win. He also took advantage of the OBC voters' displeasure with the UP government's decision to create a 4.5% reservation for the minorities within the 27% OBC quota in government jobs and education.
In 2010, Shah was accused of having orchestrated the extrajudicial killings of Sohrabuddin Sheikh, his wife Kauser Bi and his criminal associate Tulsiram Prajapati. According to the Central Bureau of Investigation (CBI), Sheikh had been harassing some marble traders of Rajasthan by demanding protection money. The CBI claimed that two of these marble traders paid Shah to eliminate Sheikh, along with police officers DIG D.G. Vanzara and SP Rajkumar Pandian.
Shah dismissed all the accusations against him as politically motivated. He pointed out that during his tenure as Home Minister, Gujarat was one of the states with a small number of police encounters in the country. He stated that he kept in touch with the police officers on the phone in the normal course of his duties as Home Minister. He accused Congress of misusing the CBI and claimed that only the cases in Gujarat were being scrutinized, while the rest of the country had witnessed around 1,500 encounters during the same period. He said if the CBI had any solid evidence against him, it would have been able to frame charges against him. In 2010, Police Commissioner Geeta Johri, who first investigated the case, claimed that the CBI was pressurizing her to falsely implicate Shah in the Sohrabuddin case.
Shah was arrested on 25 July 2010 in connection with the Sohrabuddin case. At one time, Shah was considered one of the main contenders for Gujarat Chief Minister. However, his political career was hurt by the arrest; many leaders in the Gujarat government distanced themselves from him. His fellow ministers considered him an autocratic person, who did not have good relations with his colleagues.
When Shah applied for bail, the CBI raised concerns that he would use his political power to prevent justice from taking its course. On 29 October 2010, the Gujarat High Court granted him bail three months after his arrest. However, the next day, when the courts were closed, Justice Aftab Alam took a petition at his residence to bar him from entering Gujarat. Shah was thus forcibly exiled from the state from 2010 to 2012. He and his wife moved to a room in Gujarat Bhavan, Delhi. Later, the Supreme Court canceled his bail on a CBI plea. In September 2012, the Supreme Court granted him bail and allowed him to return to Gujarat. He then contested and won the 2012 Assembly election from the Naranpura constituency. (The Sarkhej constituency had ceased to exist after delimitation.)
Shah is married to Sonal Shah and the couple have a son named Jay. Shah's mother died from an illness on 8 June 2010. People close to Shah have described him as someone who does not like to socialize much. He has six sisters, two of whom live in Chicago. In September 2019, he was operated for lipoma at the backside of his neck. On August 2, 2020, Shah tested positive for COVID-19 and was admitted to the hospital.