However, no one was injured in the incident.
The sides of the building had started tilting on Saturday and residents of the area complained concerned authorities about the condition of the building.
Sanjay Tomar, assistant divisional officer from Delhi fire service, said the collapse triggered a fire which threatened shops nearby but it was brought under control soon.
"At 00.50 hours we got information in the fire control room that a building has collapsed. Three fire tenders were rushed to the spot. Due to the collapse, a fire had started. There was a threat of fire spreading to neighbouring shops, but was brought under control by fire officials. As of now no casualty has been reported," said Tomar.
The businessmen whose establishments were in the collapsed building said that the structure fell due to unauthorised construction that was taking place on the top floor.
"There was an electric office along with our travel allowance office in the building. Unauthorised construction was taking place in the building, which I think is the reason behind the collapse. Because of the unauthorised construction innocent people have to suffer. Our hard earned money was lost in a minute," said Sarita Ramachandran, owner of a shop in the collapsed building.
The remaining front portion of the old building is also on the verge of collapse, with shutters of shops leaning out.
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