In order to engage Guru Nanak Dev Ji into worldly affairs, his father Mehta Kalu Ji, gave him twenty rupees and asked him to start his own business. It is said that he was 18 years of age at that time. Guru Ji along with Baba Mardana set out to do business. Outside Mandi Farooqabad (old Chuharkana) they came across some starving "Jogis". He could not tolerate this sight of starvation and immediately purchased edibles, with the 20 rupees, he had. He distributed the same among the starving mystics. When Gur Dev Ji's father came to know about it he was very annoyed. Guru Nanak Ji told him that he had entered into a true deal (Sachcha Sauda). The tradition of "Langar" started from this incident.

The Gurdwara was built at the site where Gum Ji had fed the mystics. This fort-like spacious and beautiful Gurdwara was built at the royal command of Maharaja Ranjit Singh during his reign. A new dining hall and a new `Sarover' has been constructed. Parkash of Gum Granth Sahib Ji takes place. Akhand Path Sahib is done 4 times a year.