This Gurudwara commemorates the historic meeting between Guru Gobind Singh Ji and Banda Singh Bahadur.It is believed that Banda Singh Bahadur was a native of Rajauri village in Jammu and Kashmir and his original name was Lachman Das. Some historians believe that he was a Rajput by birth and had been trained in martial arts and was quite fond of hunting. Once he aimed at a pregnant deer which was to deliver shortly.It gave birth to fawns and died immediately.This incident so affected the fifteen year old Lachman Das that he gave up his family life and became a recluse. He first lived at the feet of Mahant Janki Das who changed his name from Lachman Das to Madhav Das.
Touring Punjab in 1686 at the time of Baisakhi, he reached the town of Kasoor Tehsil of Lahore district. Here he met another ascetic Ram Das with whom he went to various Tirthas (sacred places) on a pilgrimage. At Nashik he met Aughad Nath from whom he acquired occult powers.After the death of Aughad Nath the leadership of the camp passed over to Madhav Das. He reached Nanded in 1692 and finally settled on the banks of the Godavari. Madhav Das became very proud of his occult powers and demonstrated his miracles to his visitors. When SHRI GURU GOBIND SINGH JI came to the Deccan along with the Mughal Emperor, Bahadur Shah He came here to Madho Das’ hut. Madho Das was away. He had learnt Tantra and was locally famous for his occult powers. He attempted to conjure his magic to humiliate GURU SAHIB, but his magic would not prevail on GURU SAHIB. Defeated he fell at the GURU SAHIB's feet GURU SAHIB asked him "Who are you?". Madho Das replied "I am Banda". GURU SAHIB asked "whose Banda?". Madho das replied "Your's". GURU SAHIB soon gave Banda the title of Bahadur. Banda was baptized and converted into the Sikh fold. GURU SAHIB gave him five arrows and sent him to Punjab to fight against the Mughals. He is popularly known as "Banda Bahadhur".