There are three legends in the Purāṇas about what made this place important among the Aṣṭavināyaka :

(1) Due to fickleness (Tharva) arising in the mind of Prajapati Śrī Brahma, his power of creation diminished. So he did penance with concentration on Lord Gaṇeśa to calm his mind, upon which the restlessness of his mind was destroyed and he became calm and stable. At the place where he achieved the stability, as a memorial of that event, Brahma named that place as ‘Sthavar Kṣetra’ which gives achievement of mental stability quickly and established Śrī Chiṁtāmaṇī there which sheds light on the minds of everyone.

(2) The royal couple named Abhijit and Gunavati begot a child from Brahmaprasada and named it ‘Gaṇa ‘. But he turned out to be a monster. Once sage Kapila gave food to this Gaṇa with the power of Chiṁtāmaṇī Ratna, a gem which he was possessing. Gaṇa snatched it away from the Kapila because of his desire for that gem. After Kapil Muni worshiped Śrī Vināyaka, Vināyaka slayed this demon and returned the gem to Kapila, but he did not take it. Then God took the name ‘Chiṁtāmaṇī’ and lived permanently under the tree where this incident took place. It is known as Kadamba Tirtha

(3) Sage Gautama cursed Indra, saying, ‘Your body will be full with holes’ for performing a profane act by cheating on his wife Ahalya. Indra begged for forgiveness. The sage then showed him the way to get rid of the effects of the curse by worshiping Lord Gaṇeśa with the Shadakshari mantra (six letters spell). Śrī Gaṇeśa was established and the nearby lake was named as Chiṁtāmaṇī at the place where Indra attained purity and freedom by doing this penance and became free from anxiety.

The greatness of this place is that the mind of the seeker who performs rituals here should attain peace and stability.