"Saying that Shivaji Maharaj looted Surat would be an insult to the Maratha warrior," said Modi during a function at the Raigad fort organised by Sangli-based foundation Shiv Pratishthan.
"He looted Aurangazeb's treasure with help of local people which was used for welfare of the common man," he said.
A "distorted" image of Shivaji has been projected for long, Modi said.
"He is shown just as a warrior. But, Shivaji was an excellent administrator whose style of functioning is relevant even today. This aspect is ignored," Modi lamented.
Tight security was put in place at the Raigad fort for the event.