In 1560 A.D.,about hundred and fifty one Gowda Saraswat Brahmin families, (mostly traders) fled from Salcettee, Goa, to escape the persecution by the Portugese. The Raja of Chembakassery welcomed them whole heartedly and gave them permission to build "pandikasalas" (wholesale business houses) to carry on trade. Under the leadership of Janardhana Pai, who is said to have owned a fleet of seven merchant vessels plying in the Indian ocean, the Gowda Saraswats carried on extensive trade with other countries.

Keen in keeping with their tradition of building temples wherever they settled, the Gowda Saraswats of Purakkad built a temple with Venu gopala as the Main Diety.

The story concerning the idol

A Gowda Saraswat Brahmin, Baruda Bhatta had left Goa at a time of some political upheaval, for Moodibidri, a strong hold of the Jains in Dakshina Kannada district with an idol of Venugopala which he had secured from Kelosi-Kusasthali in Goa. After a sojourn there, Baruda Bhatta set on a pilgrimage to Manjeswar with this idol. One day, while bathing in the sacred 'Seshatirtha' he saw the resplendent figure of goddess, 'Naga Kanya' who after expressing her desire that she should be worshipped along with his Venugopala idol, suddenly vanished. Soon after, he saw an idol of Naga Kanya on the bank of the sacred tank. Since then, he began to worship both the deities. At the request of one Krishna Kudua, a grain dealer of Manjeswar, Baruda Bhatta settled in Manjeswar with these two idols. After his death, the idols passed on through two generations  to  Ananda, a scion of the family.

 

Once Ananda set off on a pilgrimage along with the two idols to the South. On his way to Rameswaram, he happened to halt at Purakkad. As if the two idols were destined to have their permanent abode at Purakkad, the Adhikari (Headman) of the Gowda Saraswats  in his sleep had a vision of the Lord, who told him of the impending arrival of the two idols and his desire to stay at Purakkad. With this prospect in view, the Gowda saraswats had a temple built and kept ready for the installation of the idols. When it turned out as pre-sensed, the Gowda Saraswats of Purakkad told Ananda,  of the Lord's revelation and requested him to install the idols in the temple built for the purpose.

Ananda agreed, and on his return journey from Rameswaram, installed the idols of Venugopala in the temple and that of Naga Kanya in another temple nearby. This was in 1654 AD. As a mark of respect to the memory of Ananda, a pair of sandals used by him with his name inscribed thereon in Kannada, is preserved in the temple. This deity has brought properity to Purakkad and it became a major sea trade centre. Convinced by the spell of the deity, the Raja of Chempakassery, became an ardent devotee of Venugopala and granted a rent free plot of land for the perpectual use of Ananda and his successors. He built a palace near the temple for his stay during his visits to the temple which were very frequent. He also gave liberal donations for the renovation of the temple in 1705 AD and a Gopuram was built on the western gate.