It is believed that when Maharaja Chhatrasal was going to battle the Mughals, he was given a boon by a man he idolised.

Maharaja Chhatrasal was a follower of Pranami Dharma and an ardent disciple of MahamatiPrannathji. It was Dev Karanji, Maharaja Chhatrasal's nephew, who helped the king in meeting Swami Prannathji. During this meeting, the king revealed that he is going for a battle against the Mughals. At this, Swami Prannathji gave his own sword to the king and covered the king's head with a scarf, blessing him, "You will always be victorious. Diamond mines will be discovered in your land and you will become a great emperor."

This prophecy came true and today, with numerous mines, Panna is popularly known as the Diamond city.