The Mughal monument is popularly known as Anarkali. During Akbar's reign (AD 1556-1605) Shamsher Khan, the eunuch who was the Karori of Batala, built a fine tank to the north-east of the town and planted gardens in the suburb known as Anarkali. The baradari standing in the tank resembles a Jal Mahal. There are ghats around the tank but there is no proper approach at present to this baradari. Another view supports that the monument was built by Maharaja Sher Singh. It was interconnected with the Maharaja’s palace through an underground tunnel which could be seen till 1950. It is believed that the Maharaja used to hold secret meetings of his courtiers in the Jal Mahal. It consists of eleven doors, eight on the ground floor and four on the upper storey. Hence it is also known as Baradari. The inner walls contained beautiful glass carvings and wall paintings, but a majority of these frescoes have been erased by visitors over the years.
In view of its historical importance, it was declared protected as a monument of national importance vide notification no. 11390 dated 19-04-1933.