[1][2] To raise funds for construction of New Moti Bagh a three acre parcel of land contiguous to the project was sold to Leela Group, a hotel chain, for ₹650 crore (US$75 million), at about ₹216 crore (US$25 million) per acre.

[3] Sanction for the project was given by the United Progressive Alliance (UPA) government led by Manmohan Singh in 2007.

The project was assigned to the National Buildings Construction Corporation (NBCC), a Government of India undertaking.

[citation needed] There are a total of 492 residential units in the complex: 116 independent bungalows, and 376 large sized apartments.

These residential units are provided to civil servants, police officers, and Judges, based on their pay grades, at a very nominal rent, free of tax, maintenance, security, civic, and other infrastructure liabilities, which are all paid by the government.

The New Moti Bagh residential club, in December 2013, become a source of acrimony between the Government and the civil servants.

The New Moti Bagh Resident Welfare Association (NMBRWA), the Representative body of the civil servants, questioned the right of the Government to lease the club area to generate revenue, and threatened the government with legal action claiming that they have exclusive right over the use of the facility.

Sudhir Krishna, the then Secretary, Ministry Of Urban Development, in response to circular by the NMBRWA warned that the residents are "tenants" of government housing, and "should not be demanding".

The surplus treated water, according to an official National Buildings Construction Corporation (NBCC), "will be supplied to NDMC for irrigation and horticulture use".