They wanted a defense against the ever-expanding Portuguese Empire to the west, and had built a fortification on a hillside at Farmagudi.

To avoid unnecessary bloodshed, the Portuguese offered to pay off the local Maratha governor named Naik to take control over Ponda Fort.

Following dharmaveer Sambhaji maharaj's execution by the Mughals at Tulapur in 1689, the Peshwas gained control over the Maratha Empire which also included Ponda Fort.

During this time, it fell into disuse and crumbled off due to neglect, as there was no hostile forces left, to defend against.

During this time, a statue of chhatrapati Shivaji Maharaj was erected by Shashikala Kakodkar of the pro-Marathi Maharashtrawadi Gomantak Party.