Planning of the peri-urban area is one of the significant challenges in coming decades that most of third world cities have to face. Rajarhat New Town a recently developed major planned satellite township located in the peri urban areas of Kolkata. Township project was officially announced by the government of west Bengal on the 1st June 1995. The paper have two main sections first part dealt with the evolution of the peri-urban areas of Kolkata and second part composed of the brief history of Rajarhat area, land acquisition process and the role of the state, urbanization process and its socio-economic implications of the Rajarhat with special emphasis on environment destruction.