Deeply influenced by this Gurukula system of Education, Sri Narayana Bhat, with the help of some dedicated workers, set up two educational institutions at Alike and Muddenahalli (Kolar Dist.). Later on, pleased with the dedicated service and the divine mission of Sri Madiyala Narayana Bhat and other dedicated and selfless workers, Bhagawan formally took over the Institution into His fold in the year 1978. It was named as Sri Sathya Sai Loka Seva Trust (Regd). From that day onwards, Bhagawan being the Sole Trustee of this organisation, has bestowed special care and attention. After the demise of the founder Sri Madiyala Narayana Bhat (08-01-1977) Swamy took personal care of the two institutions. They have registered a remarkable progress after Bhagawan Baba took over these two institutions at His divine fold.