Old Delhi is an area in the Central Delhi district of Delhi, India. It was founded as a walled city and officially named Shahjahanabad in 1648, when Shah Jahan decided to shift the Mughal capital from Agra. The construction of the city was completed in 1648, and it remained the capital of Mughal India until its fall in 1857, when the British Empire took oveā¦Old Delhi is an area in the Central Delhi district of Delhi, India. It was founded as a walled city and officially named Shahjahanabad in 1648, when Shah Jahan decided to shift the Mughal capital from Agra. The construction of the city was completed in 1648, and it remained the capital of Mughal India until its fall in 1857, when the British Empire took over as paramount power in the Indian subcontinent.