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".