The name of the town Dagshai is believed to have actually originated from the Urdu phrase “Daag-e-Shahi”; which actually translates to a “Royal Mark or Royal Stain”.
In the past, the Mughals would send criminals to this area for capital punishment and used to brand or mark them by stamping their foreheads. Hence, the town got its name “Daag-e-Shahi” which translates into “a royal stain.”
The name got corrupted over time and turned into Dagshahi.