The Mandal was established prior to Independence along with being religious, as per the inspiration and teaches of Lokmanya Tilak. The aim of the mandal was to create awakening among the Indians to fight for freedom from the British Rule. 

“LALBAUGCHA RAJA (The Emperor of Lalbaug)” is name of the popular Ganesh Idol of “LALBAUGCHA RAJA SARVAJANIK GANESHOTSAV MANDAL”. The Mandal, formerly known as “SARVAJANIK GANESHOTSAV MANDAL LALBAUG” was founded in the year 1934, because of a vow (NAVAS) for construction of the present Lalbaug Market at its existing place. The market place at Peru Chawl was shut down in 1932.

Hence, the fishermen and vendors who used to sit in the open place vowed to Lord Ganesh for permanent place for their market. With the consistent efforts & support of the then local Councillor-Late Shri. Kuwarji Jethabhai Shah, Dr. V. B. Korgaonkar, Shri.Nakhawa Kokam Mama, Bhausaheb Shinde, Dr.U.A. Rao and the local residents, the landlord Rajabai Tayyabali agreed to give a plot for construction of a market. As fulfillment of their wish, the fisherman and the traders established the Ganesh Idol on 12.09.1934. The idol was dressed in the customary fashion of fisherman. Since that day onwards, this Lord Ganesh has become popular as it fulfills the wishes of devotees.