The constructions are going on at Fatahpur area in the outskirts of the city, where the wall collapsed killing three laborers and injuring as many, police said.
Those killed in the incident have been identified as brothers Kalicharan (32) and Vijaypal (18) and Chanderpal (32), all residents of Uttar Pradesh.
Construction of the new jail is going on a war footing as the government has planned to shift inmates from old prison to the new one at the earliest.
The old jail premises have already been auctioned by the PUDA for residential and commercial plots.