During that day, Masaji reported a minor infraction to Baba involving one of the workers.
Baba sent for Behramji and reprimanded him sharply, "You don't take interest in your work now, because you were not appointed the superintendent." Behramji kept quiet while Baba called Rustom, directing, "It is better you resign your position of superintendent and become assistant superintendent under Behramji."
Rustom consented.
Later, when all were about to go to bed, a quarrel erupted between Rustom and Masaji. Rustom blamed Masaji for continually reporting trivial matters to Baba. It was such a loud and bitter argument that Baba heard the commotion. He came and broke it up by threatening to close down the whole of Meherabad.
Two days earlier, it had been posted on the notice board that no one should salute or make obeisance to Baba without permission. Baba was in an irritable mood on the morning of 21 October. Despite his repeated warnings, the mandali continued to disregard his orders not to fold their hands to him in obeisance and not to speak with him directly.
At ten o'clock, Baba selected a group of the mandali and stated, "Before 1st November, I want you to dismantle the school, dispensary, hospital, Sai Darbar, Upasni Serai, and the leper asylum, leaving only the Makan intact."
He explained, "All these are just the scaffolding for my work and the scaffolding is unnecessary once the actual building is completed."
Baba concluded, "I intend to go back to Persia with a select few, and I will remain there until February. Rustom, Adi, Ghani, Ramjoo, and others will be called there once my future activities are decided."
A list of about 20 persons to accompany Baba was prepared, and Naval was instructed to help obtain any needed passports by 25 October. Some of those without passports were permitted to go to Bombay and Poona in connection with obtaining the necessary documents.
Everything was done in such a serious fashion that everyone believed Baba was firmly committed to leave for Persia. But just two hours later, a meeting of all the residents was called. The majority were disappointed to learn of Baba's decision to leave Meherabad. But Baba then proposed an alternative plan. He spelled out that, although all the institutions were to be closed, he would agree to remain in Meherabad with the mandali until February on the following three conditions:
1 . There should be no difference among the mandali in the method of living, conduct, and food.