It was around this time that Baba fell ill and his devotees feared the worst. Booty also felt dejected, wondering whether Baba would live to see the completed wada, never mind grace it with his presence. The whole construction seemed pointless to him if Baba was not going to remain there in his body. However, Baba was to move into the wada in a way that had not been foreseen by others. His health rapidly deteriorated and on 15 October 1918 he lay with his body fading fast. His last words were, "I'm not feeling well in the masjid. Carry me to the dagadi wada."
Baba was indeed carried to the wada, and was buried in the place where the image of Murlidhar was to have been placed; an edifice was later raised over the tomb. However, this did not happen immediately, as a dispute erupted over where Baba was to be buried. One faction led by Kushalchand, Amir Shakhar and Bade Baba insisted on burial in a Muslim grave outside Lendi Gardens, which Shama also supported; Ramchandra Patil headed the group that insisted that Baba's last words be respected and he be buried in Booty Wada. The group wanting burial in the Muslim burial ground not only deemed it appropriate for a fakir, but more urgently, they wanted to ensure that they would have access to the tomb. They were apprehensive that if Baba was buried in a private house, the tomb would become the personal property of the owner and there would be no guarantee of their admittance. Others, however, especially the younger generation, were adamant that Baba be buried in Booty Wada. Both groups shared the desire to honour Baba appropriately and the matter was eventually settled by plebiscite.