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The earliest departments to be started by the Bhavan were those of Sanskrit, Comparative Philology, Prakrit languages, Gujarati, Hindi, Indian History and Bhagavat Dharma. These departments were established within a very short time of the inauguration.
The generous donation of Shri Mungalal Goenka enabled the establishment, in 1939, of the Mungalal Goenka Institute for Higher Sanskrit Studies, which was later developed into the Mungalal Goenka Samshodhan Mandir.
The first activities of the Bhavan were started in the premises of the Fellowship School on June 1, 1939. Subsequently they were transferred to rented premises at Andheri.
Soon after this, the Department of Jain Studies was opened. With the cooperation of the Gujarati Sahitya Parishad, Shri Narmad Gujarati Shikshapith was formed. On September 1, 1939, the Mumbadevi Sanskrit Pathashala was opened as part of the Bhavan, with the help of the Mumbadevi Trust. In 1940, Shri Nagardas Rughnathdas Jyotish Shikshapith was founded, and the beginnings of a library were made. In the same year, land measuring about eleven acres was purchased at Andheri from the Government, and the generosity of several friends of the Bhavan enabled the building of its first home there to proceed.
On September 14, 1940, Shri Munshiji laid the foundation stone of the building, which when completed in 1941, was inaugurated by Dr. S. Radhakrishnan, now Vice-president of the Indian Republic.
From July 1,1942, the Government of India requisitioned the premises of the Bhavan at Andheri and in consequence, the Bhavan had to rent new premises at Worli and later at Harvey Road.
Though handicapped for want of suitable premises, the period from 1943 to 1947 marked considerable expansion of its activities with the endowment of the Singhi Jain Series and Library and the starting of the Jain Shastra Shikshapith in 1943-44; the organisation of the Bharatiya Itihas Vibhag in 1944; the starting of the Gita Vidyalaya and the institution of the Bhavan’s own examinations in Sanskrit and Gita in 1945; the inauguration by Sardar Vallabhbhai Patel of the Bhavan’s Megji Mathardas Arts College and Narrondass Manordass Institute of Science at Andheri in 1946; the development of the Mumbadevi Sanskrit Pathashala into the Mumbadevi Sanskrit Mahavidyalaya in 1946-47; the starting of the Munshi Saraswati Mandir with its varied cultural activities including the Library, Sangit Shikshapith and Kala Kendra in 1947.

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