Police identified the deceased as Shahul Hameed (66), who owned a fancy articles shop in the market.
Though he was rushed to a nearby hospital, doctors declared him dead late last night.
The fire broke out in a shop late last evening and spread quickly, gutting 10 nearby shops, but no direct casualty was reported.
Fire and rescue teams doused the blaze after hours long mission and evacuated people from the area.
Chalai market is one of the oldest and busiest markets in the capital city.
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