Named after Babua Pandey, a renowned wrestler of Bihar, who established the famous wrestling arena of Varanasi, called Akhada, where the players perform an indigenous wrestling form called Kushti. Pandey Ghat was formerly called Sarveshwar Ghat, as of the Sarveshwara temple residing there. A Dhobi Ghat can be seen between at Pandey Ghat where the washer men can be spotted cleaning clothes in classical methods.

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