The activities of the school had increased several times. Admission to the High School classes for children passing out of this school was found increasingly difficult from year to year. Therefore, the management decided to raise the status of the school to a High School from July 1949. Temporary recognition was obtained from the M.P.Secondary Education Board and the Madhya Pradesh Government. The school thus became a full-fledged High School after 54 years of existence.

Dr.Ganesan offered 2 rooms and a verandah in the outhouse attached to his Bungalow at Dharampeth for the use of the branch school free of rent in July 1942. Standard I, II and III have been started at Dharampeth Branch School as an experimental measure for the session of 1942-43. Drawing as a subject has been included in the curriculum of I, II and III from students since 1943. Similarly, Telugu section was started in Dharampeth Branch as an experimental measure in 1944. Dance classes for the students were started in the school as an experimental measure. First Aid classes for the teachers and students were also started.

In 1946, Shri K. Rangaswami, the then Correspondent of "The Hindu" at Nagpur took the initiative to collect the funds for the school. Mrs.M.S.Subbalaxmi through her performance helped to raise a substantial amount (Rs.45,000/-) towards the building fund. The second section of III form had been started in 1946. IV form was also started in this year only. The name of the school was changed from Madrasi Girls English Middle School to South Indian Girls' Middle School. Hindi was introduced in III and IV classes in 1947. The primary and middle departments were shifted to the main building in 1948-49 session in shift system. Shri. S. Bharadwaj took over charge as Head Master from Shri. M. N. Ramachandra Iyer who resigned. Hindi was introduced for class V from 1950-51.

The management obtained the Government recognition for a High School in 1949. The efforts of the management to get a plot of land through the Government did not materialize for over five years and ultimately the management had no other alternative but to purchase from the Nagpur Improvement Trust, a plot of land measuring 1.85 acres in extent on the North Ambazari Road in the Dharampeth at a cost of Rs.9000 in November 1950. Shri.Swamiji of Anand Ashram, Kannad, planted two neem saplings on 18th February 1951, which stand as two giant caretakers in front of the building today. The management decided to take up the construction in 3 stages. The foundation stone was laid by the Hon’ble Justice Shri.M.Patanjali Sastri, Chief Justice of India on 17th April 1952. A benefit performance by Kumari Vyjantimala in February 1953 gave an additional sum of Rs.20,000. A similar sum from the State Government helped to complete the ten class rooms and the High School, in the Shankar Nagar area. The school started to function in the new premises in July 1953.

The first batch of students from the Saraswati Vidyalaya appeared for the Matriculation Examination in 1952. The school has been granted permanent recognition as a High School by the M.P.Secondary Education Board and by the Education Department. Within a couple of years, the school had grown in strength and popularity. Hindi medium was introduced in the Middle and High School classes. The school became popular and demands grew up for opening additional sections to each class. Consistent with its changing role in catering to the educational needs of children belonging to all communities the name of the school was changed to Saraswati Vidyalaya in 1951. In accordance with the decision of the Education Department of the M.P.Government, the school Code was adopted in the school with effect from July 1953. Probably no other institution had taken such a far reaching step in the propagation of Hindi among non-Hindi students in addition to Mother tongue and English.