The incident near Mata Mansa Devi road was reported to police around 9 am, police officials said.
"On reaching the spot, it was found that a lift, meant to carry construction material, fell after one of its cables broke," Deputy Commissioner of Police (Outer-North) Gaurav Sharma said.
The DDA in a statement, however, claimed that only seven labourers suffered injuries in the incident, out of which one died.
"An accident occurred today around 8:30 AM at the construction site of EWS Category-II houses of DDA at Sector A1-A4 at Narela, being executed by Ahluwalia Contracts (India) Ltd. A trolley meant for carrying labourers while preparing for paint jobs, outside of dwelling units, fell down due to some mechanical failure," the DDA said in the statement.
"Due to this failure, seven labourers were injured. All the injured labourers were immediately taken to hospital for treatment. Three of the labourers who got minor injuries were relieved after administering first-aid. One of the labourers, under treatment at LNJP Hospital later succumbed to the injuries," it said.
Three other injured labourers are under treatment at Max Hospital, Shalimar Bagh, the urban body said.
The DDA has directed the contractor to pay suitable compensation under relevant labour laws to the family of the deceased and injured, the statement said.
The Superintending Engineer of the DDA has ordered an "inquiry into safety lapses" that took place at the site, it said.
Earlier in the day, a senior police official had said that eleven of the injured people were being treated at SRHC Hospital, while one of them, Sandesh, who had suffered a head injury, was referred to the LNJP Hospital.
The DCP said a case under section 304A of the Indian Penal Code for causing death due to negligence has being registered against the contractor and construction company.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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