Once the residence of the Nehru family, it is said that the estate of Anand Bhawan was bought by Motilal Nehru, the father of the former Prime Minister Jawaharlal Nehru, after his older house, Swaraj Bhawan, started serving as the offices of Congress.

The two-storey mansion of Anand Bhawan is said to have been designed by Nehru himself. A picture of grandeur, it was decorated with wooden furniture imported from Europe and China, and various other artefacts. Today, the house is a museum that houses valuable artefacts such as books, personal belongings and rare photographs of Motilal Nehru, Jawaharlal Nehru and Indira Gandhi, who was married here in 1942. The house was donated to the Government of India in 1970 by Indira Gandhi, who was the then Prime Minister of the country.