According to a different mythology, the Devagiri mountains were home to Brahmin named Brahmavetta Sudharm and his wife Sudeha. Since the couple was without children, Sudeha married her sister Ghushma to the couple’s spouse. Ghushma would create lingas, worship them, and then submerge them in the neighbouring lake, following the counsel of her sister. Finally, she received the blessing of a baby son. As time went on, Sudeha developed a jealousy of her sister, killed her kid, and dumped his body into the same lake where her sister was going to immerse the lingas.
Despite hearing through her daughter-in-law that Sudeha was involved in her son’s death, Ghushma continued to perform her daily rituals fully trusting in the Lord’s mercy. In accordance with her beliefs, she saw her son approaching her as she prepared to submerge the linga. She was confronted by Lord Shiva, who informed her of her sister’s horrific act.
Ghushma pleaded with the Lord for pardon for her sister. The Lord was pleased and gave her a blessing. He took the form of the jyotirlinga known as Ghushmeshwar since she requested him to remain there. Shivalaya was the name of the lake where Ghushma submerged the lingas.