The mishap took place in Balaji Nagar colony in Industrial Development Area (IDA) around 4 AM when all the victims were deep asleep, Sub Inspector Prasanth of Bollaram Police Station said.
The unknown persons poured kerosene on the house and set it on fire after locking the door from outside, the inspector said.
Sunkaiah (30) and his family raised an alarm following which neighbours rescued all the occupants including his wife Sunitha (26) and children--Veeranna (5), Krish (3) and Danyal (1).
The motive behind the incident is not known immediately but police suspect it to be a case of family rivalry or property dispute.
Police have registered a case and are investigating the incident.
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