The fire started around 1.15 a.m. in the Shaheed Bhagat Singh Camp at Paschim Puri.
"At least 28 fire tenders were rushed to the spot and the fire was doused by 3.30 a.m.," the officer told IANS.
Prima facie it appears to have been caused by a short circuit. The exact cause was yet to be established.
"A woman, identified as Sehanaaz, 40, suffered burn injuries and is undergoing treatment," he added.
The incident led to people ending up under an open sky on roads, and elsewhere on a cold night.
Delhi Minister for Home and Urban Development Satyendar Jain visited the area and directed the District Magistrate and the Delhi Urban Shelter Improvement Board (DUSIB) to rehabilitate those affected.
The incident comes a day after a major fire engulfed a five-storeyed hotel in Karol Bagh in central Delhi, killing 17 people.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)