The organisation had argued that the site housed a Muslim prayer area and therefore belonged to them; however Judge A S Lanjewar rejected the claim as time-barred and upheld the government's ownership.
The fort, significant for both religious and historical reasons, has been under state control since 1966.
The judgment has been welcomed by Hindu organisations, while the Majlis-e-Mushayara has filed a petition seeking a stay.
Security around the fort has been increased following the verdict.
The legal battle over the ownership of Durgadi Fort began in 1976 when the Majlis-e-Mushayara claimed the property, stating that it included a mosque and Eidgah.
The dispute arose despite a 1966 report by the district administration, which suggested the presence of a Hindu temple on the premises.
In 1966, a committee formed by the district collector submitted an initial report indicating the presence of a Hindu temple on the fort premises.
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