About a dozen labourers were working at an adjoining construction site when the building collapsed.
The workers were digging up the foundation when the adjoining building housing a footwear shop fell down, the police said.
One body has been pulled out of the rubble. The deceased has been identified as Motu Ram (45) of Chhattisgarh, Sub Divisional Magistrate, Nurpur, Abid Hussain said.
Two injured persons were rushed to hospital. The exact number of labourers trapped under the debris was yet to be ascertained.
The police and local people rushed to the spot and an NDRF team also joined the rescue operations.
The rescue teams are cutting through the concrete to reach out to the victims, the police said.
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