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He alone deserves to be called an inmate of the Ashram who has ceased to have any worldly relation - a relation involving monetary interests-- with his parents or other relatives, who has no other needs save those of food and clothing and who is ever watchful in the observance of the eleven cardinal vows. Therefore he who needs to make savings, should never be regarded as an Ashram inmate.

- M. K. Gandhi


In January 1932, Gandhiji was arrested and detained in 'Yervada Jail' in Pune. There he resorted to fast untill death against the award of separate electorates for the depressed classes. The matter was settled between Gandhiji and Dr. B. R. Ambedkar and 'Poona Pact' was signed which provides the reserved seats for depressed classes in place of separate electorates.
Gandhiji, after this incident, started a massive movement for the uplift of the untouchables from jail itself. He started an All India Anti-Untouchability League with his industrialist friend Birla as President and A. V. Thakkar as Secretary. In January 1933 he started a weekly journal 'Harijan' to work for the upliftment of the depressed classes. He had also made over Sabarmati Ashram to Harijan Sewak Sangh.
After his final release from prison in August 1933, Gandhiji went on a 12,500 mile tour of India from November 1933 to August 1934. During this tour, he collected about eight lakhs rupees for the cause of untouchability.
In 1934, Gandhiji decided to start the Village Industries Association. He gave much thought to the choice of a suitable place as headquarters. Jamnalal Bajaj wished to persuade Bapu to select Wardha as the headquarter, and took advantage of this occasion to point out that it was a good choice as it was situated in the centre of India, and he himself was prepared to present his buildings, gardens, furniture and other implements for the work of the Village Industries Association. Gandhiji accepted the offer, and Jamnalalji handed over his beautiful garden and building to the Organisation as promised. The estate was named Maganwadi in memory of the late Maganlal Gandhi. Maganwadi thus became the headquarters. Bapu began staying there with the idea of organising and popularising the work of the Association. He remained at Maganwadi for nearly a year and a half. There were so many important events which took place during the period in connection with village uplift work like regeneration of village industries, village sanitation, food experiments and discussions with constructive workers.