Legend has it that the people in the vicinity of Nageshvar Temple were terrorized by demoness
Daruka. People were attacked and killed by Daruka. Merchants could no longer do
their business as all their goods were looted by her.

Demoness Daruka was an ardent devotee of Goddess Shakti. She
prayed to her for help. Goddess Shakti then asked demoness Daruka to make her
home in a dense forest nearby and not to harm other living beings.
Shiva decided to stay there as Nageshvar and Goddess Parvati
appeared as Nageshvari. Both keep a close watch on the forest that demoness
Daruka resides.
Nandi On the Back Side of Aundha Nagnath Temple
Nandi On the Back Side of Aundha Nagnath Temple
Another famous story associated with the Nageshwar Jyotirlinga
Temple at Aundh has it
that once the entire temple turned to listen to bhajans of Saint Namdev and
devotees.

Saint Namdev and devotees went to the back side of the
temple and continued the prayers. It is said that Shiva turned the entire
temple to listen to the prayer.
That is why the Nandi in the temple is located at the back
side of the temple and not in the usual front side.
Please note that Nageshvar Temple near Dwarka in Gujarat is also
believed to be a Jyotirlinga Temple.