Foundation works are underway for a five-storey multi-complex mall along Mandela Avenue, next to the Chinese Embassy.
The construction is being managed by Jason Wang, owner of the China Trading, located on Robb Street.
Town Clerk Royston King says the initial construction work was unauthorised and after an inspection by engineers from the city the work was halted.
However, an application for the continuation of the work was granted about a month ago. But the permission only allows for preliminary or foundation work.
When Stabroek News visited the area yesterday, workers were busy driving piles.
Upon completion of the preliminary work, King added, permission will be required from the Mayor and City Council upon a request of the Central Housing and Planning Authority (CH&PA) for additional work to be done. But an inspection will be necessary before the progression, he said.
A draft of the plan for the structure is currently with the CH&PA, the source stated.
Questions had been raised over a number of months as to who was behind the work and whether permission had been granted.