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It is said that the name 'Bhandup' is derived from the Bhandupeshwar temple of lord Shiva.

In 1803, on payment of a quit-rent, the East India Company granted the major part of Bhandup and parts of two other villages to Mr. Luke Ashburner, alderman of Bombay and editor of the Bombay Courier. In 1817 Mr. Ashburner sold the estate, together with the contract for supplying Government rum, to his manager Mr. Kavasji Manekji Ashburner for a sum of �50,000 (Rs. 5,00,000). In the colonial period, Bhandup was also known to have the biggest distillery of liquor in the Bombay Presidency.It was started to supply European troops with rum.

Bhandup Estate came into effect as a result of grant by the East India Company i.e. United Company of Merchants of England, through the Collector of Salsette and Bombay to one Luke Ash Burner sometimes on or about 17 September 1803. By the year 1930, the ownership of Bhandup Estate was held by three individuals i.e. Shivji Raghavji, Sir Mathuradas, and Shoorji Vallabhdas. Upon the demise of Sir Mathuradas Vissanji, Shoorji Vallabhdas and Shivji Raghavji, the strength of Bhandup Estate by induction of their respective legal heirs and/or representatives, was increased and the Petitioners are the present constituents of Bhandup Estate.

For Further Reading: Thane District Gazetteer