Fire fighters have completely doused the flames, which erupted between 1 and 2 AM.
Fire department officials said that around 12 fire tenders were rushed to the spot to douse the flames, which left three persons injured, including one seriously.
"Fire was reported between 1 AM and 2 AM and fire tenders of all our stations were pressed into service to douse the flames. The fire is now under control," A P Singh, Chief Fire Officer of Ghaziabad, said.
Locals said heavy smoke filled the area as the blaze spread and small cylinders kept in the jhuggis exploded.
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