A division bench of Justice Akil Kureshi and Justice J B Pardiwala asked Gujarat government and the Centre to suggest whether such an important ancient building could once again be listed as a "protected monument" so as to preserve its historical importance.
The High Court has also asked Archaelogical Survey of India (ASI) to give suggestions with regard to the issue of re-listing the Moti Shahi palace as a "protected heritage monument".
"It is unfortunate that such a historical monument has been de-listed from the list of protected monuments and authorities have granted permission for new construction," the High Court observed during the hearing.
The Moti Shahi palace was built in the year 1621 and was notified as a "protected ancient monument" by the colonial British government in 1904, the PIL said.
However, after the formation of Gujarat state in 1960, the palace was de-listed from the list of protected monuments the same year and it was used as Raj Bhavan to house the Governor's office, the PIL said.