The blaze started at around 11.45 am in the market set up on the occasion of Diwali at Zilla Parishad Ground in Aurangpura area of the city. Makeshift firecracker stalls are erected on the ground during Diwali every year.
Over 150 cracker stalls went up in flames, while 40 vehicles, mostly two-wheelers, parked in and around the ground were also gutted, they said.
Police and Fire Brigade sources said four people sustained minor injuries.
The cause of the blaze was not immediately known but prima facie it appears a short circuit led to the incident, a Fire Brigade official said.
Smokes laden with harmful chemicals billowed from the market and enveloped the area.
Police Commissioner Amitesh Kumar and other senior officers visited the spot and took stock of the situation.
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