The 4th of February 1916 was theauspicious day of Vasantha Panchami.Benares wore a festive appearance. On the bank of the holy Ganga the Viceroy and governor-general of India, Lord Hardinge, laid the foundation stone of the Hindu University. The ceremony was attended by distinguished persons, national leaders and leaders of every community - Hindus, Muslims, Parses and Christians. Rajas and Maharajas graced the occasion.

Malaviy was of the view that the study of the Vedas, the Upanishads, the Gita, the Mahabharata, the Ramayana and the Holy books, and fostering of Indian culture and of Sanskrit language were matters of importance. He established the University for the fulfillment of these ideals of his life. And it became the very breath of his life.