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 is 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 on the roads under an open sky 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 was very sad and tragic. The good part was no one lost life. The Delhi government will offer help of Rs 25,000 to each family for rehabilitation. Until they re-establish themselves, the government will arrange tents for them along with food, blankets and toilet facilities. The reason for the fire will be probed," Kejriwal told the media here.
The incident comes a day after a major fire engulfed a five-storey 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.)