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Kasturbhai was taken ill in Bombay on January 8, 1980. In view of his condition doctors advised him complete bed-rest for a fortnight. Kasturbhai insisted to go to Ahmedabad and said that he would take rest there only. Doctors did not agree. But Kasturbhai had completely indentified himself with Ahmedabad. He expressed his keen desire to spend his last days in Ahmedabad. He was so restless that ultimately doctors had to agree to his proposal. Despite shooting pain, Kasturbhai's face was lit with delight. He was taken to the railway station in the ambulance van. Next morning on reaching Ahmedabad, he felt so happy showing as if all the pain had disappeard. However on January 19, 1980, he breathed his last and departed quietly for divine abode.
Kasturbhai believed that on account of an individual's death, work of national production should not stop. According to him real tribute to the departed soul would be to work in pursuit of his ideals. He directed that not a single mill should stop its work in consequence of his death. His sons conveyed this to the workers of the nine textile mills of Lalbhai Group, who resp their master's last wish and did not stop work. It was indeed an unique event in the history of Ahmedabad, where Kasturbhai's own mills worked, whereas work in the rest of the entire city was suspended as a mark of respect to him.
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