History of Palamu district is associated with several legends. Mainly three aboriginal races namely kharwars, cheros and oraons ruled over the district over time. The kharwars are believed to be the descents of Ayodhya or Ajanagara and they claim to be Suryavanshi Kshatriyas. The sixth son of Manu Vaivasata, known as Karusa, had been given the charge of the eastern territory. Karusas was referred to the descendents of Karusa who later came to be known as Kharwars or Karwars. They were the traditional rulers of Rohtasgarh. The district had experienced a great prosperity during the days of the Pratapadhaval, one of the chiefs of Kharwars, who ruled the district in twelfth century A.D.
Cheros were considered a higher race in the Aitareya Aranyaka along with the Magadhas and Vangas. Till now the race is popularly known as revered cheros `cheropadas`. Vedic sacrifices were not observed among them. According to some beliefs Cherons moved to this district from Kumaun, however, there are not much evidences to testify this fact.
Mandas is another race which is believed to have descended from Karusas. The Ramayana has however mentioned their movement towards south. Legends say that this aboriginal race had played the band when Lord Rama was coroneted in Ayodhya and they had been granted this region for their splendid services. Jarasandha, an ally of the Mand, had been killed by the Pandavas and thus in the Mahabharata war, the Mandas supported Kauravas and joined the army of Bhishma. According to Sanjaya, Mandas and Karusas were in the left wing of Bhishma. It is also believed that Arjuna had married a Naga princess belonging to this region. Medini Ray was the most renowned king among all the kings who ruled over the district over time.
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