The blaze broke out in afternoon in one of the huts, and soon spread to adjoining huts, said Tahsildar Korpana M T Walsare.
Fire-tenders were rushed from the nearby cement factories, which took three hours to douse the flames.
"The fire has left 250 people homeless and caused loss of property around Rs 50 lakh. The exact cause of fire is being ascertained," said Walsare.
Temporary housing arrangements have been made in the same area for those affected, he added.