What was the deeper meaning behind Pundalikrao's story about the lost coconut?

The incident with Pundalikrao and the lost coconut served as a profound spiritual lesson. As explained in Chapter 51, the loss of the coconut was merely an excuse for Sai Baba to provide advice that would clear Pundalikrao's distressed mind. The true essence of this story is that it was a play to free Pundalikrao from the pride and guilt associated with his ego. The text explicitly states that the more one can achieve a non-egoistic state, the more authority one gains on the spiritual path, which in turn makes it easier to cross the metaphorical ocean of worldly existence.