IV 32 cidakaso ham ityeva rajasa ranjitaprabhah
svarupam atyajanneva virupam api buddhyate (31)
O Holy sage, pray, tell me, when and how will the three demons attain liberation?
Rama, when they listen to the narration of their story and are reminded of their own essential nature as pure consciousness, they will be liberated.
In course of time, there will arise a city named Adhisthana in the middle of the country known as Kashmir.
In the centre of that city there will be a hill whose peak will be known as Pradyumna.
On top of that hill there will be a skyscraper.
In a corner of that building the demon Vyala will be born as a sparrow.
In that building, a king known as Yasaskar will reside.
The demon Dama will be born as a mosquito and reside in a hole in one of the pillars of that palace.
Elsewhere in that city there will be a palace known as Ratnavali-vihara which will be inhabited by the state minister known as Narasimha.
The demon Kata will be born as a bird (myna) and live in that palace.
One day that minister, Narasimha, will recite the story of the three demons Dama, Vyala and Kata.
Listening to it, the myna will be enlightened.
It will recall that its original personality was but a magical creation of the demon Sambara; this recollection will free it from the magic of Sambara.
The demon Kata will thus attain nirvana (liberation).
Other people will recount this story and the sparrow will also attain liberation after listening to it.
Thus will the demon Vyala attain liberation.
In the same way, the mosquito-demon Dama will also listen to this story and will also attain liberation.
Such is the story, O Rama, of the three demons Dama, Vyala and Kata, who, on account of their ego-sense and their cravings, fell into hell.
All this is nothing more than the play of ignorance and delusion.
it is the pure consciousness that entertains the impure notion of 'I am', playfully as it were, and without ever renouncing its essential nature as consciousness, experiences the distorted image of itself within itself.
Even though this distorted image is truly unreal, the ego-sense ('I am') believes it to be real and gets deluded.