Officials demolished some dilapidated shops on the historical Sri Lakshmi Janardhana Swamy temple land near Holalu Circle in the town on Saturday.
The commercial outlets belonging to the temple were certified weak and hence the district administration had recently instructed the officials concerned to demolish them, officials said.
According to officials, the Muzrai Department has planned to construct a new commercial complex on the land.
In august 2012, the department had cleared some encroachments around the temple and also sealed 45 shops for their failure to pay rent to the department.
Mandya tahsildar Maruti Prasanna monitored the demolition operation.