The Nadir Divan-Begi Madrasah (1622-23) was initially erected as a caravanserai. At the inauguration ceremony Imam Quli Khan unexpectedly proclaimed the supposed caravanserai is to be a madrasah. So Nadir Divan-Begi was obliged to rearrange the caravanserai by adding on to the front the loggias, the portal and angular towers. He also constructed an additional storey with cells. The Nadir Divan-Begi Khanaka is located opposite the Nadir Divan-Beg Madrasah on the western side of the Lyab-i Hauz.