However, nobody was injured as the residents had evacuated the building before the incident that took place on Sunday night.
According to locals, a portion of the building named B M Shah, which housed several hundred shops, offices and godowns, had begun to lean on last afternoon seeing which the municipal corporation officials were informed.
However, as it was a weekend, none of the officials turned up and at around 1 am, the five-storey building suddenly started collapsing after which the police and fire officials were called in, they said.
Following the collapse, a godown inside the building had caught fire due to a short circuit.
However, the firemen removed the rubble and extinguished the fire.
The building had been declared dangerous while a case has been registered against unknown persons in this regard.
Portions of the building which are still standing are being demolished by the MCD and the work will continue tomorrow as well, with the fire department monitoring the progress, police added.