A park was developed at the centre of this new locality and was named in honour of the then Chief Minister, as Panagal Park. Thyagaraya Chetty was carved out of the southern part of the erstwhile Mambalam zamindari. During 1923–25, the township of "Thiyagaraya Nagar" named after Sir P.T. That very same year, the administration of the Mambalam zamindari, situated to the west of the Long Tank, was relinquished by its hereditary chief. The Long Tank, which formed the western frontier of the city, was drained out in 1923. Until the turn of the 19th century, the villages to the west of Mount Road formed a part of Chingleput District. Nagar, located around the Thyagaraya Road. Pondy Bazaar serves as a satellite commercial hub for T. Nagar is considered one of the city's major central business districts, the other being Parry's Corner, the centre of the city. The neighbourhood is served by Mambalam railway station of the Chennai Suburban Railway Network. It is known for its plethora of saree and jewellery retailers, including Pothys, Nalli Silks and Saravana Stores. Initially built as a residential neighbourhood, it is now considered the largest shopping district in India by revenue. Nagar is believed to be the first planned urban neighborhood in Chennai created in 1920, conceived in a European style, with the Panagal Park resembling the Arc De Triomphe and the Pondy Bazaar resembling the Champs-Élysées in Paris.
The streets, parks and localities in the new neighbourhood were named after important officials in the provincial government. It was constructed between 19 by the Madras Presidency government of the Raja of Panagal as a part of town planning activities initiated according to the Madras Town Planning Act of 1920. Nagar Bus Stand has some of the costliest real estates in Chennai. The stretch between Duraiswamy Road and T. Nagar (a part of Greater Nandanam region) in the South and West Mambalam and Kodambakkam in the West. It is surrounded by Nungambakkam in the North, Teynampet in the East, Nandanam in the South-East, C.I.T. Nagar, is a very affluent commercial and residential neighbourhood in Chennai, Tamil Nadu, India.