[2][3] Merlapaka was born in the village of Vedulla Cheruvu near Renigunta, Andhra Pradesh in a Telugu-speaking family.
[4] His father Merlapaka Murali was a Telugu language novelist and a contemporary of author Yandamuri Veerendranath.
Murali changed his five-year old son's given name to 'Gandhi' in honour of independence activist Mahatma Gandhi.
After completing his graduation, he convinced his father to let him join a Cinematography course at the L. V. Prasad film institute in Chennai, Tamil Nadu, although, he eventually pursued a direction course there.
Having received a good response upon its release online, he then started developing the script for Venkatadri Express which was his debut film as a director.