Police said the fire, which according to preliminary assessment was due to short circuit, engulfed the whole area of the colony. Meanwhile, angry residents of the colony went berserk and pelted stones at the fire personnel, who went there to put out the flames.

Police controlled the situation while nine fire tenders were pressed into service to extinguish the fire.

Andhra Pradesh Revenue Minister T Devender Goud, who visited the spot along with senior officials, announced an immediate relief of Rs 1,500 for each affected family.

The injured, who sustained 15 to 25 percent burn injuries, have been admitted to the Osmania General Hospital, sources said.