Ten fire engines were pressed into service to douse the flames, fire brigade sources said.
There were no casualties. Damage to the building was yet to be assessed.
The fire started between the third and fourth floors around 1.30 pm, and spread rapidly.
Regional Disaster Management Cell chief Santosh Kadam said some 150 people inside the building were shifted out.
Inspector Sanjay Dhumal of Naupda police station rescued some of the stranded people by climbing up a scaffolding put up for painting work.
Chief Fire Officer Shashikant Kale said that initial probe revealed that a short circuit between the third and fourth floors caused the fire.
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