The renovation project for the old market came to a standstill after an impasse over the issue of rehabilitation of the existing traders. According to an official in Kolkata Municipal Corporation (KMC), the deal was frozen temporarily as the CPM-led civic body did not get the ruling party's nod after a setback in the panchayat elections.

"The corporation has taken Rs 30.33 crore from the company. So the deal has to be worked out. Talks are on to resolve the stalemate over the rehabilitation of the traders," the official said.

The rehabilitation process was slated to begin by March while the demolition should have started in May but for the impassé. The issue of the traders’ temporary rehabilitation and their other demands had forced the KMC to stall the work.

“The corporation will start the rehabilitation work soon on the outskirts of Park Circus Maidan. Once that is done, we will notify the traders to vacate the market,” said Sahidul Islam, Joint Commissioner for Development, KMC. “Reliance is cooperating with us and is ready to wait,” added Islam.

The market houses 544 large and small shops and is in a dilapidated condition. “No maintenance work has been done by the KMC for the past seven years. Whenever we demanded upkeep we were asked to leave,” said Girindra Chandra Pal, joint secretary, Park Circus Market Bachao Committee. KMC, however, had increased the rent of the shops a couple of months ago.

Traders said they will not leave the market unless they are assured of their rehabilitation and consequent return to the market.