Annotation schemas are not neutral. When applied to classical literature, tag sets developed for modern journalistic texts impose source-culture definitions on texts they were never designed to describe. We instead ground a schema in the tradition of the text itself introducing \textit{Padārtha}, the first ontology-grounded fine-grained Named Entity Recognition (NER) benchmark for Sanskrit, built on the \textit{Mahābhārata} epic. Our tag set derives from \textit{Nyāya-Vaiśesika}, a classical Indian ontological system, yielding 18 fine-grained categories organized under 10 ontological nodes and mapped onto five standard coarse tags, ensuring interoperability with existing benchmarks. Expert annotators label over 12.6K entries from a scholarly index of named entities, linked to corresponding mentions in the \textit{Mahānāma} corpus, producing fine-grained annotations for 108,335 entity mentions across 73,632 verses, along with a 5,000-verse expert-verified test set sampled to stress rare mentions. We present the first systematic benchmarking of generative NER against traditional architectures for Sanskrit, finding that fine-tuned generative models perform comparably to task-specific systems. However, all systems show a sharp decline from coarse to fine granularity and struggle with out-of-entity mentions unseen during training. The limitation is not due to data scarcity alone, as fine-tuned models recall unseen entities far worse than seen ones and tend to default to the majority sense under lexical ambiguity.
The digitisation of classical Sanskrit literature is impeded by a scarcity of annotated resources, particularly for Named Entity Recognition. While recent methodologies utilise generic Large Language Models (LLMs) for data augmentation, these approaches remain prone to error and often lack the reasoning depth required for classical grammar. In this work, we introduce Naamah, a high quality silver standard Sanskrit NER dataset comprising 102,942 sentences. We propose a methodology that combines entity extraction from DBpedia with the generative capabilities of a 24B parameter hybrid reasoning model to create grammatically natural and synthetically diverse training data. We utilize this dataset to benchmark two transformer architectures: the massive multilingual XLM RoBERTa and the parameter efficient IndicBERTv2.