The Library was Founded by Sri V V  Subroya Sresthy.

Influenced by the library movement that was just gaining ground in the South , some enthusiastic young men in Vetapalem, under the inspiring leadership of the late  V.V. Subroya Shreshty established a small reading room cum library in the name of “Hindu Yuvajana Sangham” on the auspicious day of Vijayadasami on 15th October ,1918 in a rented premises.

After functioning for five years, the institution was on the verge of the closure due to high indebtedness. Then, Shri Shreshty came to its rescue clearing the debts, providing a reserve fund and endowed more than 7 acres of wet land in Thimmasamudram,Gonasapudi,Chebrolu for its maintenance and took over the management, changing the name of the Library to Saraswata Niketanam.

Sri V V Shreshty devoted his time and energy for the development of the Library. Many rare books were added and the collection was built up rapidly. Shri V VShreshty was one of the examiners in “Ananda Bharathi Theertha” Home University. This institution used to conduct examinations and confer degrees to candidates. After his untimely demise in 1935,his wife Kamalamba got the tiled house, re-modelled into a beautiful spacious building, in which the Library is situated today.

In recognition of the services of V VShreshty, the building was named after him as “Subroy Mahal”.