City Superintendent of Police R M Shukla said the bus, belonging to a private school, caught fire at the Station Bus Square with 30 students on board today afternoon.
Onlookers and police personnel rescued them quickly, he said.
The documents of the bus, including its 'fitness certificate', were up to date, but no first-aid box and fire extinguisher were found inside, he said.
Police arrested driver Rakesh Joshi, while the Regional Transport Officer cancelled the fitness certificate of the vehicle, he added. The bus is 12 years old, he said.
Following the accident, the transport department initiated a drive against the school buses which do not meet safety norms.
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