The temple was founded by Dagadushet Halwai, a local sweet seller who got wealthy by his business in 1893. Dagdusheth Halwai and his wife Lakshmi Bai when they lost their two sons in the plague of 1892. The Ganeshotsav is celebrated faithfully by the Dagdusheth family and their neighbours. When Lokmanya Tilak made the Ganpati festival a public celebration to bring people together for the freedom struggle, Dagdusheth Ganpati became the most respected and popular idol in Pune.