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LORD VISHNU reincarnated in 'VAMAN' or 'DWARF AVTAR' because there was a devil BAL who had a total of 660 million followers who were all disbelievers in GOD. With so many followers, BAL took to oppressing momins and not only that, but he sought advice from his GURU as how to combat the LORD and become successful.
His GURU advised him to perform as many YAGNAS as he could ( YAGNA means religious ceremony of inviting thousands of people, including RAJAS, MAHARAJAS, prominent personalities, and feeding them, presenting them with precious metals, gold, silver utensils, etc.) BAL fantastically performed 999 YAGNAS, but because of arrogance, his KUBUDHI (WRONGS of MIND) did not vanish.

One who performs YAGNA should not marry two wives at a time. But BAL, against the religious laws of the times, and to deliberately provoke GOD, married another wife while one was still living. The DEVLOK, MOMINS and the angels prayed to the LORD to punish BAL for his misconduct.

In 'VAMAN' or PIGMY AVTAR, the LORD appeared at BAL'S house as a beggar asking for alms. The dwarf asked for three and a half of his footsteps i.e. 3 ½ HATH ( 18 inches per HATH) of LAND for his hut. The wealthy BAL despite warning from his GURU SHUKRACHARYA took this as a mockery.

But Lo! The “VAMAN AVTAR” measured out the land with his divine “VIRAT” SWARUP (GODLY Aspect) as follows:
In FIRST STEP the Lord measured SWARGA (the Heavens),
In SECOND STEP the Lord measured MRATYU (the Earth),
And in THIRD STEP the Lord measured PATAL (the World Underneath the Earth).

Still BAL owed the LORD HALF HATH OF LAND! He was unable to give. Consequently, the LORD pressed BAL’S body into the PATAL, and he was killed. The light of religion illuminated the world once again.

Pir SADARADIN says in the Holy Ginan: -

BAL BHUPAT RRAYUINE SIA HUA,
JENE KIDHA NAVSO NAVANU JAGAN;
JASH BOLAYA TRAN LOKMA,
BAL E DIDHA DAN APAR;
SAMI GHER AAVIYA NAHI ODAKHYA,
BALNE CHAMPYA PAIYAR –KARAM . . . .

O MOMIN, think of KING BAL who was a great YAGNA performer.
He spent immense wealth after 999 YAGNAS.
Even after such fantastic charities, he became arrogant
And as result the Lord condemned him.
Therefore humility in life to achieve the true essence
Of religion is most essential.

BHAGAT KAMLADHAN was chief BHAGAT of the time. He, along with many other momins was graced with salvation and HAKIKATI NOORANI DIDAR.