Muslim ruler Yusuf Adil Shah of Bijapur built a summer palace cum fortress around year 1500. It was captured and converted into a rest house for the Portuguese Viceroys, who used it for an overnight stop, on their way to and from Portugal.
As per tradition, the new incoming Viceroy stayed here while awaiting the receipt of the ceremonial keys to the city of Old Goa at the Viceroy´s Arch. Similarly, the outgoing Viceroy had to wait here, for a ship going back to Portugal, after handing over his responsibility at Old Goa