The genesis of auctioning the Ganesh Laddu which has become customary at every single Ganeshs idol in the country began in Balapur in 1994, fourteen years after the actual tradition started (1984). Balapur is the first village in the whole world to have begun the auctioning of the Laddu (considered as a boon to one who buys it).
It is the belief of everyone that the laddu brings good luck to the bidder who won the auction. Later, the winner would distribute it among the villagers and would also sprinkle some of it in the fields for a better crop.
The auctioning arrangements for the gathered people are completed by 6 A.M. in the morning of the eleventh day. Devotees from various places and states come early in the morning to visit the Balapur Ganesha mandap and witness the auction. To meet the requirements of such a huge crowd, the streets are arranged, a stage is set with the complete audio system, Decors, water supply and breakfast arrangements (Mostly organized by volunteers).
The actual auctioning procedures begin from 9 A.M. in the morning of the Immersion Day. After the Ganesh Utsav Committee Members and guests give their words of praise and broadcast the importance of the day to the gathered multitude (people in the range of lakhs), the auction is commenced by Mr. Vangeti Laxma Reddy with the initial bid of Rs. 1,116 (One Thousand One Hundred and Sixteen Rupees).
This initial bid amount is set by the committee and it remains the same every year. Mr. Vangeti Laxma Reddy has been the Auctioneer since 1994, the year of inception of the Laddus bidding.
The enthusiasm of the people could be seen once the bidding reaches the previous years amount. The actual cheer and fervor in the crowd begins from the moment the bid crosses the limit set by the previous years bidder. The winner of the preceding years auction has to handover the complete amount to the Ganesh Utsav Committee in front of the Balapur villagers and all the gathered battalion.
The auction winner has to sign an affidavit a legal document stating the same, before receiving the Laddu from the Ganesha idol.
More than 20 bidders participate in the auction of the Balapur Ganesh Laddu. Luck favoured Mr. K. Mohan Reddy in 2008 (bought for Rs. 5,07,000) who also won the first auction for Rs. 450 in 1994.