According to historical records, the temple was founded in the 18th century by Appa Gangadhar, a Maratha soldier in the Scindia army. Mortally wounded during battle, Gangadhar prayed to Lord Shiva, vowing that if he survived, he would erect a temple at this spot in Shahjahanabad. After making a miraculous recovery, he constructed the shrine around a natural brown stone lingam that was worshipped by local ascetics.
The temple was substantially expanded and embellished in 1959 by Seth Jaipura, who contributed extensive marble work and silver cladding.
