However, there was no loss of life or injury to anyone in the incident, a police official said.
The bus, bearing Jammu registration number, was parked in the bus stand at Batamaloo when it caught fire, he said, adding the fire resulted in heavy damage to the vehicle.
The fire was later brought under control, the official said.
While the bus owner alleged that the vehicle was set on fire by some persons, the police are trying ascertain the facts, including the cause of the fire, the police officer said.
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