 The name Dagshai, according to a popular local legend was derived from "Daagh-e-Shahi".During the Moghul times a "Daagh-e-Shahi" (royal mark) was put on the forehead of the criminals and sent packing to the then Dagshai village.Built by the British as a sanatorium for tuberculosis patients, it has a British era graveyard overlooking a valley.