According to Shivapuran, in the southern direction, on a mountain named Devagiri lived a Brahmin called Brahmavetta Sudharm along with his wife Sudeha. The couple did not have a child because of which Sudeha was sad. Sudeha prayed and tried all possible remedies but in vain. Frustrated of being childless, Sudeha got her sister Ghushma married to her husband. On the advice of her sister, Ghushma used to make 101 lingas, worship them and discharge them in the nearby lake. With the blessings of Lord Shiva, Ghushma gave birth to a baby boy. Because of this, Ghushma became proud and Sudeha started feeling jealous towards her sister. Out of jealousy, one night she killed Ghushma's son and threw him in the lake where Ghushma used to discharge the lingas. Next morning, Ghushmas and Sudharm got involved in daily prayers and ablutions. Sudeha too, got up and started performing her daily chores. Ghushma's daughter-in-law, however, saw stains of blood on her husband's bed and parts of the body drenched in blood. Horrified, she narrated everything to mother-in-law Ghushma who was absorbed in worshipping Shiva. Ghushma did not deter. Even her husband Sudharma did not move an inch. Even when Ghushma saw the bed drenched in blood she did not break down and said he who has given me this child shall protect him and started reciting Shiva-Shiva. Later, when she went to discharge the Shivalingas after prayers she saw her son coming. Seeing her son Ghushma was neither happy nor sad. At that time Lord Shiv appeared before her and said - I am pleased with your devotion. Your sister had killed your son. Ghushma told Lord to forgive Sudeh and emancipate her. Pleased with her generosity, Lord Shiva granted her another boon. Ghushma said that if he was really happy with her devotion then he should reside here eternally for the benefit of the multitudes in form of a Jyotirling and may you be known by my name. On her request, Lord Shiva manifested himself in the form of a Jyotirling and assumed the name Ghushmeshwar and the lake was named as Shivalaya thereafter.
Shiva devotee, Ghushma(The Patil or chief of Verul) once found a treasure hidden in the snake pit (ant hill) by the grace of Lord Grishneshwar. He spent that money to renovate the temple and built a lake in Shikharshinganapur. Later on, Goutamibal (Bayajabai) and Ahilyadevi Holkar renovated the Grishneshwar temple.
From Aurangabad Airport the temple is 36.5 km. Regular flight services are available from Aurangabad Airport to Jaipur, Mumbai, Udaipur and Delhi. From Aurangabad station it is 29 Km and Daulatabad Railway Station 17.7 km. Since Aurangabad and Daulatabad are not in the main route. Nearest major Railway Station is Manmad at distance of 101 km.
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