Said to have been built by the rulers of the Vijayanagara dynasty, the temple is a testimonial to the strong influence of Jainism in the region. Tipu Sultan is believed to have set up his battery at this site, earning the town its name Sultan Bathery. It has served as a shrine, an administrative hub and a military base. The Jain temple is a protected monument under the Archaeological Survey of India.
Sultan Bathery was once known as Ganapathi Vattam. There were 12 traditional Jain streets around the area. After Tipu Sultan's conquests, the temple remained abandoned for about 150 years. The idol of the main deity, currently installed at the Ananthanath Temple in Kalpetta, is brought to Sultan Bathery during Mahavir Jayanti. Devotees can offer their prayers at the temple during the festival.