In 1887 Khadga Samsher conspired to remove Bir Shumsher Jung Bahadur Rana from prime-ministership in an unsuccessful coup attempt.

In 1888, a limited power was reinstated by assigning as the Governor General and the commander in chief (Tainathi) of western Nepal and allowed to relocated in Palpa-Gauda.

To commemorate his grief and the queen's last wish to construct a place of pilgrim, Khadga decided to build a palace.

[1] As Khadga Samsher abandoned the palace and fled to India, Rani Mahal was left behind without any proper owner or caretaker.

Also, foot trail from Kailash Nagar near the Batase Danda, about 13 km from Tansen leads to Ranimahal.