This region belonging to Muloor Village was ruled by Arasas about 1,500 year ago. There were 3 temples in this region in which 2 belonging to Shaiva pantha and another belonging to Vaishnava Panth. In this Vaishnava Temple Shri Laxminarasimha God was worshipped. According to historical records Laxmi Narasimha Temple was situated on the North side of the Phalguni bridge. This temple was believed to be submerged in the river later.  Shree Hanumantha's deity was also believed to be at the temple as the Banta of Shree Laxminarasimha God, along with the protecting Daiva of Shree Raktheshwari. During their Sanchara, these Hanumantha and Raktheshwari Daivas were believed to be residing at this Vajradehi Matha centuries ago. As a proof of this incident, Shree Laxminarasimha Saligrama and Shalagrama Bimba are found in this matha presently. Also the presence of Raktheshwari Daiva is another proof of this.

Once upon a time this pilgrim place was purely an agricultural oriented land growing food crops like paddy, coconut, areca-nut, banana, sugarcane etc. to meet the food demands of this area.  The ancestors of Shri Swamiji belonging to the Kuthethoor Kambali family were engaged in the agriculture profession. The entire family has been religiously worshipping Shree Anjaneya since many years.  Shri Shri Shri Rajashekharananda Swamiji's Purvashrama name was Nonayya.  When Nonayya was cultivating the land, some object obstructed the plough. When observed, an idol of Hanumantha (Anjaneya) and a coin having the Bimba of Shri Rama was found.

When consulted with astrologers, it was advised that this is a good omen to the family and they suggested building a temple there. Accordingly Nonayya took Sanyas Deeksha and became Shri Shri Shri Rajashekharananda Swamiji.  Swamiji built a matha and rejuvenated the temple.  After this event, thousands of devotees started coming to this Kshetra and got the blessings of Shri Swamiji for their Ishtartha Siddhi. This process revolutionized the religious feelings of the people which led to the huge popularity of Shree Vajradehi Kshetra. Now Vajradehi Matha and Shri Rajashekharananda Swamiji have become a popular worshipping place in this region.