The palace was an act of charity by the spiritual leader of the Nizari Ismaili Muslims, who wanted to help the poor in the neighbouring areas of Pune, who were drastically hit by famine by offering them work.

[2][4] Aga Khan Palace is major attraction of photographers for various kind of photo shoot because of its special architecture, greenery and perfect for photography lighting.

Kasturba Gandhi and Mahadev Desai died during their captivity period in the palace and have their Samadhis located over there.

The then prime minister Indira Gandhi had visited the place in 1974 where she allotted a sum of ₹200,000 (US$2,300) every year, for its maintenance.

The amount rose to ₹1 million (US$12,000) until the 1990s,[6] after which the national monument of India, was neglected for many years due to improper allocation of funds.

In 1992 a portion of Mahatma Gandhi's ashes were shifted in the complex and a similar (not replica) samadhi built.

[2] Gandhi Memorial society celebrates the following public functions at the palace: Other than yearly events, morning prayer sessions are held daily at the samadhi since decades.

The prayer draws huge crowds everyday, and the number goes up threefold on 2 October as people visit the place to pay tribute to Mahatma Gandhi.