During the Mahabharata period the river was known as Charmanvati or Charmanyavati. It was the most important river in Shakuni’s kingdom. Shakuni, Duryodhana and other Kauravas cheated Pandavas in the dice game and usurped their kingdom. They then attempted to disrobe Draupadi in front of the assembly.
For her humiliation, she cursed that all who would drink from the Charmanyavati that flowed through Shakuni’s kingdom would suffer eternal punishment in hell. The kingdom was soon abandoned by its occupants.
There is also another reason for people avoiding the river and this is associated with its origin. Rantideva, a Vedic king, is believed to have performed sacrifice of 2000 cattle in the region. The river originated from the mountain of dripping leather of the cattle. And the river derived its name from Chamra or skin. Due to this gruesome incident people avoided the river.