After visiting Punjagutta Saibaba temple, Mr. L. V. Subbaraju was inspired to build a Baba temple in his hometown. He and his brother found a mango farm, but the owner of the farm Mr. Reddy was initially reluctant to sell it. Then Mr. Reddy had a wonderful dream in which Baba asked him to sell the land for the Mandir. Without any thoughts he immediately sold the land to the Raju brothers. On 20th Jan 1998, the Mandir land was bought. Mr. L. V. Narasaraju wasn't a Sai devotee, but one day he had to light the lamp before Baba, as the lady who usually did it hadn't turned up. He went searching for matches, but before he found any to his sudden surprise the lamp lit by itself and was burning more brightly than ever. Mr. Narasaraju lost consciousness for about 5 minutes and when he returned to normal his attitude towards Baba was completely changed. On that same day a Swamiji asked him clearly if he believed in God. Since these experiences Mr. Narasaraju has become a staunch devotee of Sri Saibaba.
His brother Subbaraju had business problems. He made a vow to Sri Saibaba that if his problems were solved he would donate a large sum of money to the Mandir. By Baba's blessings his problems were solved and he donated the money for the construction of this Mandir.