Though the original temple was built ages ago by Gritsamada, the current temple was reconstructed and built in the year, 1725 A.D by Peshwa General Ramji Mahadev Bilwalkar. The story behind the origin of this temple is that young prince Rukmaganda once when on a hunting trip, went to rest in Rishi Vachaknavi's Ashram. The Rishi's wife was so attracted towards the prince that asked him to fulfill her wishes. Rukmaganda refused instantly and left the Ashram. But the Rishi's wife Mukunda had become lovelorn. Seeing her troubled condition, Lord Indra came in the form of Rukmaganda and made love to her. Thus Mukunda gave birth to a son named Gritsamada. But when he grew up he cursed his mother knowing that Rishi Vachaknavi was not his father. To this the mother cursed that he would give rise to a demon. But suddenly they heard a heavenly voice which told them that Gritsamada was actually the son of Indra. But as it was too late to change the curses Mukunda became the Bhor plant. But to free himself from the curse of his mother Gritsamada performed a penance to Lord Ganesha in the Pushpak forest. Appeased, Lord Ganesha granted him a boon to stay at this place and Gritsamada built a temple there which was known as the Varad Vinayak Temple.