The foundation stone for the fortress was laid by Peshwa Baji Rao I who was PM to the King Sahu on JAN10th 1730. The basic structure was completed in 1732 costing around Rs 16.110.
The initial attempt was to build a residential palace but later it was converted into a fortress. The teak wood was procured from Junnar, Limestone from Jejuri and Stones from Chinchwad.
The fortress has 5 gateways located at vantage points and 9 watch towers looking in various directions with cannon posts for firing gunpowder on the enemies closing in. The complex was supposed to have a durbar hall, dining place, and huge bedrooms for the residents. The complex had a reservoir to supply water to the fortress.
There are eloquent description of how the palace was beautifully decorated with teak carvings and panels embedded with ivory. There was a treasure house of paintings and artifacts which were collected as war residues from conquest. Precious jewels and coins were also stored. The palace was surrendered to the British governor John Malcom in 1818. A conspiracy took place and the palace was ignited to be destroyed, before time all the valuables were taken away to safe private custody. Thus the legacy of loot continued. Currently the fortress is maintained by the ASI.