Dev's failure to recognize Sai Baba stemmed from a prior encounter that created a mental block. According to chapter 40, before Dev had even invited Baba to the Udyapan, the same man in the guise of a Sanyasi had visited him for an entirely different reason: to collect funds for cow protection. Because of this mundane first meeting, when the Sanyasi later appeared on the day of the feast and asked for a meal, Dev simply saw him as a guest and not as Baba in disguise. Dev himself later reflected on this, admitting that this previous context created a "delusion" that prevented him from seeing the truth.
Why didn't Dev recognize Sai Baba when he appeared as a Sanyasi at the feast?
📖 Chapter 40