Four persons suspected to have committed the cold-blooded murders were arrested, police said.
Sikandar along with his three accomplices allegedly killed the victims, they said.
The victims had been missing since March 29.
Pushpa Singh, a widow who ran a small shop in the area, had sometime ago purchased a flat from Sikandar. He with the help of his three accomplices killed the woman and her two daughters-- Pradipti and Aradhana.
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They then buried the bodies four feet under the floor of an abandoned shop.
During interrogation, Sikandar and his accomplices admitted to the crime.
The police suspect that the crime was committed because of greed for property and valuables.
The bodies have been sent for post-mortem.