The historic institution of His Highness, The Prince of Arcot has been in existence since 1867 A.D.

After the abolition of the Nawabship of the Carnatic in 1855 A.D., the Government created the new title - His Highness, The Prince of Arcot, by an issue of the Royal Letters Patent in 1867 A.D. Even today, the President of India officially recognises the present Prince, Nawab Mohammed Abdul Ali, as His Highness, The Prince of Arcot. The title of the Prince of Arcot also carries certain special privileges, honours and courtesies granted by the Government which also provides a residence for the Nawab - Amir Mahal.

After the abolition of the Nawabship of Carnatic in 1855 A.D., the Government took over the original Chepauk Palace, known as Kals Mahal, which stood on 121 acres of land situated at Marina, which now houses Senate House and Public Works Department offices.

After the demise of the last Nawab of Carnatic, who died without an issue in 1855, the Government committed to provide a suitable new residence to the paternal uncle of the deceased Nawab, Prince Azeem Jah, who was later recognised as the first Prince of Arcot.

As per a Government Order (No: 113, dated 28-03-1870), the Royapettah Police Court was purchased for converting it into the official residence of the Prince of Arcot and his successors in title. This building, with its stately facade, grand Durbar hall and Banquet hall, was built in 1798, used as Royapettah Police Court and finally converted into a palace, fit for the residence of the Prince.

Under further orders, the building was named Amir Mahal and the Government made an allotment in their budget for its upkeep and annual repair works. In 1940, the Government of Madras, in consultation with the Prince of Arcot transferred the management of Amir Mahal from the charge of the Madras Government to the Central Government that is now looking after its maintenance, annual repairs, electrical installation and furniture establishment through the Central Public Works Department (CPWD).

The present Prince of Arcot, who is the eighth in accession, continues to live in his ancestral 's historic and official residence - Amir Mahal, along with his family, staff and servants and their families, who total nearly 600 in number.