Three and a half centuries ago, the famous emperor Shahjahan shifted his capital from Agra to Delhi and established the city of Shahjahanbad(now know as Delhi). On the banks of River Yamuna, he built the majestic Lal Qila (Red Fort). Chandni Chowk was built by his daughter Jahanara as an accompaniment to the Red Fort. It was designed as a large market chowk (square) with a central pool. According to legend, it was the shimmering moonlight on the water of the pool that gave it the name of Chandini Chowk or the "the moonlight square".
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