I think that this should be either "There is a lot of people in Delhi" or "There are lots of people in Delhi"
Translation sounds fine to me as a mother tongue english speaker. 'There is a lot of people' sounds wrong to me, but maybe it's a regional thing?
Sometimes the correct English sounds wrong but I don't know if I am using the correct English. I was just throwing it out there. Anyway it accepts "There are many people in Delhi" so I am happy with that.