Concerning Meher Ashram, a new proposal was discussed to open the boarding school in Meherabad instead of Ahmednagar, though Borker preferred Ahmednagar. On 25 March, it was finally decided to locate the Meher Ashram school in Meherabad, because the children would then have the benefit of Baba's constant companionship.
The following appointments were made: Borker was to be in charge of Meher Ashram; Dhake was to be the principal and head of the education department.
Behramji was to manage the boarding and lodging departments; and Vishnu was to serve as Dhake and Behramji's assistant. The existing school in the Mess Quarters (for the few village children) would be shifted to the Family Quarters, and the Meher Ashram would be located in its place. A new residence for the men mandali who had been staying in the Mess Quarters would be built near the well and dhuni.
Baba concluded, "Many graduate teachers will come to serve in Meher Ashram. If anyone from the mandali hesitates or expresses unwillingness to do any of the work, he will be freed from duty, in which case he will be given food twice a day without being assigned any work."
Rustom was busy buying building materials to erect a grand structure for the school. But as it was now decided to house the school in the Mess Quarters, Baba sent Padri to Ahmednagar to inform Rustom that the plan had changed.
During the period of discussions about Meher Ashram, many people came into the Master's contact. The proposed opening of the school in Ahmednagar brought Borker and Nusserwan Satha especially close to him. Baba's method of working was marvelous. Public notification about the new institution brought applications from several teachers and a few students. Baba indicated that before calling anyone for an interview, the applicant should be sent a list of the rules and regulations to be followed. There were already six students living at Meherabad — Babu and Murli Kale, Dattu Mehendarge (nephew of one of the teachers), Vithal Irani (Pilamai's son), Baban Shahane and one more boy. Baba instructed Afseri to write to Memo to enroll Adi Jr. in Meher Ashram, if she desired him to be "put in the spiritual line."
Nisal, one of the teachers, had been temporarily reassigned to help Borker in Ahmednagar, and Chhagan taught in his place.