During the 17th century, Shah Jahan, the fifth Mughal emperor, ascended Delhi’s throne. After his coronation, he shifted the capital from Agra to Shahjahanabad, now known as Old Delhi. It was during this time that Chandni Chowk came to life. Built by his beloved eldest daughter, Jahanara, in 1650, Chandni Chowk initially comprised a square and a central lake overlooking the majestic Red Fort. The canal supplying water from Yamuna is tributary to the Red Fort passed through this square and added to its aesthetic appeal. Apart from this, there was a 1.3 Km long stretch of wide pavement lining the canal where locals used to spend hours, lost in conversations.
According to the tales, it is believed that during full moon nights, the square and its central lake shimmered brightly under the silver rays of the moon. Hence, it was often called “The Moonlit Square” in the colloquial language. Merchants from all over Asia and Europe came and settled here to start their businesses. Chandni Chowk gradually emerged as the busiest market in the-then Delhi, housing over 1500 shops shaped as a half-moon.