Utelia was founded in 1786 by Bhav Sinhji, a member of the Vaghela Rajput clan that once ruled much of Gujarat, Rajasthan, Malwa and Rewa.

The Palace Utelia was built around the turn of the century to replace a wooden palace by Nekamdar Thakore Saheb Sur Sinhji.

The Palace Utelia is a typical work of the Indo-Saracenic architectural style with European influences, and features 5 domes, pillared galleries, balconies and porticos.

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