In 1932, the marketplace at Peru Chawl was shut down. The fishermen and traders vowed to Lord Ganesha for a permanent place for their market. With the consistent efforts of then local bodies and residents, landlord Rajabai Tayyabali agreed to give a plot for the construction of a market. Eventually, the Lalbaug Market was constructed.
As a fulfilment of their wish, 'Lalbaugcha Raja Sarvajanik Ganeshotsav Mandal', formerly known as 'Sarvajanik Ganeshotsav Mandal, Lalbaug', was founded and fisherman and traders established the Ganesh idol in September 1934. Since that day, this idol became popular as 'Navsacha Ganpati' i.e. the one who fulfils the wishes. Around 1.5 million people visit this Ganesh pandal daily during the 10-day festival.
In 2019, the festival began on September 2. After being kept for public display for 11 days, the idol was immersed in the Arabian Sea at Girgaum Chowpatty on Anant Chaturdashi.