[1] It was built by Ibrahim Khan II, Bengal's last subedar (provincial governor) before Aurangzeb's grandson Azim-ush-Shan took control of the region, as his recreation resort opposing the Bara Katra in the Chowk Bazar neighborhood of Old Dhaka on the other side of the river.

It continued as such until he moved his diwani in 1703 to Mukshudabad (renamed a year later to Murshidabad, now in West Bengal, India), following conflict with and an assassination attempt from the prince.

[1] When Alivardi's successor Siraj-ud-Daulah, the last independent Nawab of Bengal, killed the deputy Naib Nazim of Dhaka Husayn Quli Khan allegedly for having an affair with Alivardi's eldest daughter Ghaseti Begum, both of whom together managed state affairs due to her husband and cousin Naib Nazim Nawazish Muhammad Khan's illness, in 1754, Husayn's family members, who resided in the palace, suffered the same fate.

The seven rooms of the original palace still survive but in extremely poor state of conservation along with the two octagonal side towers, the derelict south gateway and the remains of its broad foundation with the surrounding moat.

[1] The site is now indicated as a haoli (manor house) by the local people and is engulfed by dense habitation and commercial establishments.