Finally, with the willing cooperation of Sudheer Krishna, who was not a Kannadiga by birth, the construction of the building in memory of Muddana began.  Under the scheme of the District Development Project (additional) a sum of Rupees 12,000 was sanctioned to Mitra Mandali for the project.  Besides engaging workers for the project Sudheer Krishna laid the foundation stone for the Muddana Memorial building for the second time.

Under the leadership of Balachandra Rao four youngsters went to Bengaluru and bothered the ministers.  Being amused by his persistence in furthering the cause his friends would call Balachandra Rao ‘the ever-pestering ghost’.  They got Rupees one lakh sanctioned by the Department of Kannada and Culture and another one lakh from the Department of Tourism.  They went to Mumbai and collected about 85,000 Rupees from the Tulu and Kannadiga friends.  Under the stewardship of Subbayya Shetty they are said to have collected Rs. 29,000 on a single day.

Thus a beautiful memorial structure was constructed at a total cost of Rs. 3 lakhs.  It included an auditorium, a library and an office.  It was inaugurated on May 16, 1987 by Dharmadhikari Veerendra Heggade of Dharmasthala with Dr. K. Shivarama Karanth as the President.  On the same occasion MLA Vasantha Salian unveiled a portrait of Muddana drawn by artist K. M. Acharya.  A portrait of the late Sithamma Heggadthi was unveiled by K. S. Hegde, former Speaker of Lok Sabha.  It was Dr. Lalitha Rao, former Minister of Maharashtra, originally from Dakshina Kannada District, who released the commemoration volume of Mitra Mandali titled ‘Manorama’.

Vidyavachaspathi Bannanje Govindacharya was invited to release two anthologies: ‘Mungoli Kugitu’ (The Morning cock crowed) by Srikrishna Chennangodu and ‘Nagevadu’ (The Humour Song) by Dr. N. Vasudeva Rao.  Bannanje Govindacharya as usual delivered a scholarly discourse.  Dharmadarshi Harikrishna Punaruru inaugurated the Traveler’s Bus Stop.

What followed was a Sahitya Gosthi – a literary meet under the presidentship of Professor Rajagopalacharya.  His rendition flowed freely and fluently in his presidential speech.  In the papers presented by Prof. Amrita Someshwara, Prof. T. Krishna Bhat, and Prof. Keshava Uchila – the words of Muddana were analysed in detail and they were an intellectual feast for the audience.