In the years after its establishment in 1638, Shahjahanabad, the capital of the Mughal Empire under Shah Jahan, was no longer contained within the walled city, it soon spilled into surrounding areas, stretching into miles at each end, where half of its population stayed.Blake, p. 57 By 1739, the suburbs covered 1800 acres and included areas like Mughalpura, Sabzimandi, Paharganj, and Jaisingh Pura. One of the largest and most important suburban mohalla of the Walled City of Delhi, and located just outside the Ajmeri Gate of the Walled city, Paharganj was one of five main markets of Delhi, and the only one outside the walled city. Also, it was the principal grain market of the city in the 18th century, where grain was ferried, across Yamuna River, from wholesale markets and warehouses in Patparganj and Shahdara. Just outside the Ajmeri Gate was the custom house of the emperor, for collecting taxes.Blake, p. 117 Between Paharganj and Akbarabadi gate of the walled city was Shahganj, another wholesale market, while on the other side towards Jantar Mantar was Raja Bazar.Blake, p. 58 In fact, Paharganj was also referred as Shahganj or King's ganj or market place during Mughal era, it gets its present name 'Paharganj', literally meaning Hilly neighbourhood, owing to its proximity to the Raisina Hill, where the Rashtrapati Bhavan stand today. Till 1857, neighbourhoods like Paharganj, Kishenganj, and Pahari Dhiraj, were separate pockets which in the following years grew and merged, for example Pahari Dhiraj merged into Sadar Bazaar.
