Today every expanding Indian City has Metro Rail projects in various phases of planning and construction. Many of them have underground construction involving open-ground excavation extending to varying depths. These deep excavations are typically linked with high risks such as excessive ground surface settlement and displacement of nearby facilities such as underground pipelines, buildings, tunnels, etc. that may cause significant financial losses and even fatalities. The success of such operations depends on several factors. Groundwater flow during construction is one of the most important factors as this may significantly increase the surface settlements due to seepage discharge, and its control has a significant impact on the stability of excavation. The permeability of the excavated strata determines the amount of seepage discharge and consequent settlements. This paper discusses in detail the effect of relative permeabilities of two-layered soil system on discharge, drawdown, and surface settlement caused by the open underground excavation with D-Wall, using Finite Element Program (FEM) PLAXIS 2D. A comparative study of steady state and time-dependent coupled flow analysis is also being carried out to see the effect of time on seepage, drawdown, and surface settlement.