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The fort was built in 14th century in the Gajpathis kingdom, who are from Orissa. Udayagiri, was attacked by Krishna Deva Raya for a period of 18 months after which he was successful. It fell under the rule of Krishna Devaraya of Vijayanagar in 1512. After the fall of the Vijayanagara Empire, it was ruled by chieftains of Golconda and later by Nawabs of Arcot.During the reign of Gajapatis and the Vijayanagara Empire, the fort was extended. The entire city and the surrounding hill of 1000 feet height were encircled with walls. The fort consisted of thirteen buildings, with eight of them on the hill and five below. It also consisted of several beautiful temples and gardens. After the fall of the Vijayanagara Empire, it was ruled by chieftains of Golconda. The mosque on top of the hill has two Persian inscriptions that credits the construction of the mosque and the planting a nearby garden to Shaik Husain, chieftain to Sultan Abdullah of Golconda.

Then it came under the rule of Nawabs of Arcot, who granted the title of Jagir to Mustafa Ali Khan. His descendants controlled it till 1839, until they were deported by Nawabs again to Chengalpet for their treason. It was formerly a place of immense importance. The walls which once encircled the town have almost entirely disappeared, but much of the fortifications on the neighbouring hill to the west still remains. The fort originally consisted of thirteen separate strongholds, eight on the hill and five below. Inside the walls are the ancient remains of tombs, temples and palaces. A part of the hill is so precipitous and thus inaccessible, the cliffs being in places nearly 1,000 feet high, and every path up to the fort was commanded by lines of defence forces. Other structures include Chinna Masjid and Pedda Masjid. A great Sufi saint belonging to the 18th century, Rahamathulla Nayab Rasool, got absorbed in the higher-self here. Every year the Sandal Festival is celebrated on the 26th of the Rabi-Ul-Aval month. Mahaboob subhani sandal s also celebrated every year. This town is known as "Nawabi Adda".

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