The first Ativadi sect was founded by an Oriyan-brahmana named Jagannatha Dasa, who lived during Lord Caitanya's time. Jagannatha Dasa was a professional Bhagavatam reciter, and his sweet voice attracted many followers. He claimed to be a disciple of Srila Haridasa Thakura, but later broke with Haridasa and began to preach his own concocted philosophy.

Jagannatha Dasa wrote his own translation of Srimad-Bhagavatam, and attempted to get an audience with the Lord to recite it for him. His translation was in Oriyan, and it contained five new chapters of Jagannatha Dasa's own invention. In order to avoid hearing this concocted philosophy, Lord Caitanya told him: “A fallen jiva such as Myself is not worthy to hear the Bhagavatam composed by a poet like you. You have become too great, ativadi. An insignificant soul like Me can have nothing to do with you.”

Jagannatha Dasa, who was covered over by false pride took Lord Caitanya's sarcastic statement to be one of praise rather than condemnation, and he and his followers propagated this Bhagavatam throughout Orissa. This Bhagavatam is rejected by true Vaisnavas.