In July 1992, the foundation stone-laying ceremony took place at plot of land acquired by the UP government.

Kalyan Singh’s government in UP had built permanent structures on the 2.77 acres of land acquired right opposite the shrine in Ayodhya.

Kalyan Singh’s government in UP had built permanent structures on the 2.77 acres of land acquired right opposite the shrine in Ayodhya.The Uttar Pradesh government led by Chief Minister Kalyan Singh in 1991 had acquired 2.77 acres of land opposite to the shrine for allegedly promoting tourism and to provide amenities for pilgrims. The land acquisition was challenged in the Supreme Court. It ruled that the state government could neither transfer the land nor build any permanent structure on it.

The UP government through then CM Kalyan Singh had tendered an affidavit in July 1992 permission not to alter the status quo. The buildings on the acquired land were demolished, contending that the apex court had barred construction but not demolition. The entire area opposite the Babri masjid, a graveyard since 1855, was leveled. By late 1992, the state government began making steady progress in handing over the disputed shrine and the land around it to the Vishwa Hindu Parishad(VHP). The VHP activists had already started laying a three-tiered concrete platform but viewed it as a non- permanent structure. However, the court found that the permanent structures were erected at the disputed site in the name of pilgrimage facilities.

Kalyan Singh was subsequently held for contempt of court in 1994 and was sentenced to token imprisonment for one day with a fine of ₹20,000.