The constant threat of an attack by Sambhji, in 1683, shifted the attention of the Portuguese towards the protection of the mainland areas. It was mooted to shift the capital to Marmugao. It was this strain, that prompted Marques de Pombai, to order Governor Filpe de Valadares Souto Mayor in 1774, to demolish the Fort Gaspar Dias. For some reason it was not demolished. On 6th September 1799, a fleet of 6 English Ships disembarked at Aguada and occupied the Fortresses Aguada, Gaspar Dias, Cabo and Mormugao for almost 15 years up to 1814. When they left, they had done considerable damage to these Forts.
On 10th February 1835, during the Civil War days of Prefecture, the First Regiment of Infantry and the Artillery Battalion which was stationed in Panjim, made counter revolutionary movement. This rebellion was quashed and the Fortress put to flames. Seven years later, the Fortress was restored and partly reconstructed in 1842.
A committee created by an Order dated 4th February 1869, suggested that the Gaspar Dias Fort was not of battle use and that the same could be converted into sanitary quarters for convalescing military personnel. And so served as a sanitarium in 1878.
Later not much is known about Fort Gaspar Dias and so it crumbled with neglect and was ultimately razed to the ground to make way for development works for the road to Dona Paula.
According to Jeronymo Osorio do Castro, at the beginning of the century, this area served as a burial ground for Hindus and Muslims, and a place for the city’s garbage!!.
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