This was built after he gave the famous Falaknuma Palace to the sixth Nizam of Hyderabad state, Mahbub Ali Khan, Asaf Jah VI.

The Palace housed the Consulate General of the United States of America in Hyderabad till 15 March 2023, after which the mission began services in its new chancery at Nanakramguda.

Nawab Abul Fatah Khan Bahadur, the eldest grandson of Sir Vicar ul Umra and son of Amir e Paigah H.E.

Nawab Sultan ul Mulk, was the last member of the Paigah family to have lived in this Palace.

It is a large two-storied neo-classical building with a portico, semicircular arches, unfluted Corinthian columns, projected and pedimented windows and deep arcaded verandahs on all four sides.