In the year 1932, The "Bhandarkar oriental research institute" in Pune, needed money for the compilation and publication of the Hindu epic-Mahabharata and a guest house. A formal request was made to the seventh Nizam, Mir Osman Ali Khan who in no time released a farman of Rs.1000 per year for a period of 11 years. Whereas, Rs. 50,000 was offered for the guest which is known as "Nizam guest house".