A fire gutted the auditorium in Hyderabad's famous Salar Jung Museum on Friday morning.
The Museum officials said the priceless collection of antiques and the Nizam's jewellery are safe.
They were kept in a safe in an adjacent room.
No one was injured in the accident.
Museum director A Narender Reddy said a fire broke out in the Western block of the Museum at around 7.30 am. The Central Industrial Security Force noticed the fire and immediately alerted the fire services. In all, five fire tenders from Moghulpura and Gowlipura rushed to the spot and immediately to put out the fire.
But before they could finally put out the raging blaze, the Museum's auditorium, with a seating capacity of 260, was gutted. The false ceiling, furniture and carpets were destroyed.
The Salar Jung Museum is the third largest museum in India, housing the biggest one-man collection of antiques in the world dating back to the 1st century.
Salar Jung III (1889-1949), the prime minister of the seventh Nizam of Hyderabad, spent a substantial amount of his income over 35 years in putting together the museum.