They suspect a short circuit could have led to the fire, which broke out at the main market in Malik Pura last night, but the exact cause is yet to be ascertained.
"Police are investigating the incident. It seems a short circuit could have started the fire," SDPO (Gandoh) Sunny Gupta said, adding the fire has been doused and the losses are being assessed.
Shops and the residential complex belonging to Md Hanief, Altaf Hussain and Abdul Aziz, all resident of Tilogda Bhalessa, were gutted in the fire, police said, adding the car belonged to Wasim Ahkter.
"Locals and police personnel reached the spot within 30 minutes and started operations to control the fire that was rapidly spreading to other shops and houses, mostly made of dry Cedar and Pine wood," Gupta said.
The blaze was extinguished after fire tenders reached the spot, he said.
The SDPO said there was no report of loss of life or injury to anyone in the incident.
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