There is an interesting story behind the building of this picturesque temple dedicated to Shri Balaji Maharaj located in the oldest quarter of the city, on the road to Golconda. Jham Singh was a Rajput cavalier serving the third Nizam of Hyderabad, Nawab Sikander Jah Bahadur. The Rajput held the rank of Kumedan’ and was the Commandant of Remounts.

One of his main duties was to purchase horses for the Nizam’s Government and he was thus entrusted with a large amount of money.Jham Singh was a lover of horses and a deeply religious man too. One fine day, Jham Singh took the state funds placed in his custody and proceeded to build a fine temple to Shri Balaji Maharaj in the part of the city known as Caravan,so called because in the olden days caravans bringing merchandise used to encamp there. Luckily for him, the third Nizam was a kind and tolerant man.

Instead of clapping the Rajput in jail or worse, Sikander Jah laughed it off. Amused by the daring exploit,the Nizam even paid a visit to the finished temple and admired its fine architecture, in particular the figures of horses at the entrance.

The horse lover in Jham Singh did find expression here as also in the splendid temple rath (chariot) cariing Shri Balaji Maharaj and drawn by two wooden horses. So, it was not punishment but praise.The Nizam presented his errant noble with ajagir, which even today yields a handsome annual revenue to the temple and to Jham Singh’s descendants who administer it. This shrine attracts thousands of people every year to its colourful jatras and rath festivals.