The Residency originally belonged to Nawab Asaf-ud-daula and subsequently was sold to some Europeans who ran a business in European goods. The entire Residency complex faced shelling and counter shelling over a long period of 5 months. Later on, it was occupied by Vilayalti Mahal Makhdarah Aliyah, the begum of Nasir-ud-din Haider. After her death her step-sister Sharafunnisa had built an Imambara and a mosque at this place in a traditional architectural style of Awadh unlike other buildings of the Residency.