The mansion is located atop a hillock known as Erragadda or "red hill" in the native Telugu language. For this reason, nawab Fakhrul Mulk decided to name the new palace "Iram Manzil" (Persian for 'Paradise Mansion'), because the Persian word 'Iram' meaning 'Paradise' sounds like "Erram," the Telugu word for "red." He also got the building painted a shade of red in order to emphasize the link, and so you had the red-coloured Erra Manzil on top of Erragadda hill. The nawab intended that the mansion be known by two similar-sounding names: 'Iram Manzil' for the Persian-friendly Muslim nobility of the state and 'Erram Manzil' for the local Telugu people. In time, the latter name has prevailed, and "Erra Manzil" is now the official name of the palace.
Irrum Manzil was used for royal banquets and other grand events. Later, the palace was taken over by the Government to be used as a records store-house . After some years it was again transferred into the hands of Public Works Department. Presently this palace houses offices of the Engineers-in-chief and the Chief Engineers of the Roads and Buildings and Irrigation/ Command Area Development Departments.
Recently the Government of Telangana said that the heritage structure, Irrum Manzil would be razed to the ground because of its dilapidated state. There is huge effort to save this heritage structure by the locals. This heritage comes under B2 category on the list of archaeological survey of India. Recently, a High Court order made it illegal to demolish the structure.
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