Meanwhile there was discussion in the court of Bali on earth. His ministers and generals as well as Danavas urged, O king, all the earthly kingdoms are now ours. Indra cannot hope to match your valor and strength. We must defeat the Devas and annex their kingdom of heaven to our empire. Brahma has granted you immortality and lordship. This is the time to get the full benefit of the boons you have secured from Brahma. At an auspicious moment decided by Shukracharya, the Danava army got ready to invade heaven. The war trumpets and drums frightened Amravati, Capital of Heaven. Indra met his foes boldly riding his white elephant Airavat, marching at the head of the united Devas army. Aditya, Varuna, Kubera, Yama and other Devas fought for many days against Bali and his army. But they began to flee from the battlefield one by one unable to face Bali. Having been wounded by Bali's arms, Indra ran for his life and sought the advice of Brihaspati, his preceptor.

Brihaspati told Indra, Devendra, it is futile to fight Bali. You cannot defeat him. Justice righteousness and truthfulness have made him resplendent and invincible. Therefore it is better that you go underground for some time. Accordingly Indra and the other Devas left Heaven. After establishing victory over Heaven, the Danavas installed Bali on the heavenly throne as Daityendra and celebrated the occasion as a coronation. Bali appointed his own men in place of the guardian angels of the eight directions, the Sun, the Moon and other positions to represent him in heaven, and returned to his capital on the earth.

The next day Shukracharya said to Bali O king of the Danavas, the Heaven also is yours now because of your twin virtues of charity and valor. Since the Under-world is also under your sway, the three worlds, the Earth, the Under-world and the Heaven are yours. But you have appointed Danavas in place of Devas. You have taken away their powers who enjoyed the power to rule over all these worlds which the Creator Brahma and Vishnu the Protector had given them. They may not take it lying low. They are sure to take revenge. If you desire to retain this over-lordship of the three worlds permanently you should perform one hundred 'Ashwamedhas' (horse sacrifices). Get ready to perform them from today

Bhrugukachha situated to the north of Narmada was selected as the site for the performance of the sacrifices. A large open area in the grounds of the hermitage was chosen as the place to keep the sacred fire burning. Bali took the vow of sacrifice along with his queen Vindhyavali. There were unexpected calamities on the earth now. There were earthquakes at some places. At some other places rivers overflowed and swept away villages. At yet other places fires broke out and caused great damage. Unable to understand why such things took place, Bali came to Prahlada and asked, what is the cause for these eruptions and calamities? Are they caused by the magical powers of the Devas?

Prahlada who was a devotee of Vishnu was capable of seeing into the past and future with his divine wisdom. He entered into a deep trance and understood the cause of it all. He said, Vishnu has taken birth in the world in order to defeat and humble the insolent Danavas who are drunk with power. These calamities betoken greater calamities awaiting the Danavas. Hearing these words, Bali became angry. With blood-shot eyes he turned to Prahlada and said, Are we to be afraid of the Devas? Each warrior among us is capable of carrying the whole earth on his shoulders. When that is our strength, what can one Vishnu do to us?

Prahlada also became angry and chastised Bali thus, You fool, you are too bold to speak ill of Sri Hari, the eternal lawgiver and protector. You have spoken thus knowing well that I am a devotee of Sri Hari. Very soon you will lose your kingdom and will be banished from earth. King Bali realized his error. in fact Bali was not an enemy of Sri Hari. He had lost control over his tongue on account of his pride of valor. Regretting his conduct, he became humble. Tears of sorrow appeared in his eyes and he was unable to speak. He fell at the feet of Prahlada and begging forgiveness he said, be kind and merciful. You have rightly cursed me for my insolent words. I do not feel sorry if I lose my kingdom. I may get it back some how. But where can I get a guru like you? I am more in sorrow because my speech has hurt your feelings.

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