The cause of the fire was not immediately known. However, in hushed tones, people blamed the short-circuit inside the bag manufacturing unit operating in the building for the massive blaze.

The area is part of Sadar Bazaar, the city's largest commercial market.

In Delhi's old localities many factories and small manufacturing units have been set up in old and cramped quarters, where the rent is relatively cheaper.

Such places double up as living places for the poor, mostly migrant laborers and workers, who try to save money on accommodation and then earn much more by working for long hours.

It was not immediately known as to how many people were residing inside the building at the time of the fire.

According to fire service officials, the victims were rushed to RML hospital, Lady Hardinge Hospital, LNJP Hospital and Hindu Rao Hospital.

"Thirty-four were brought dead here and 14 are admitted here," said a health official at LNJP hospital.

According to the health official, the deaths were caused due to smoke inhalation and some bodies bore burn marks as well.

The local government in Delhi has ordered an inquiry and announced monetary compensation for the victims.

"We have lost more than 40 innocent lives to the tragic fire. I've ordered a magisterial inquiry into its cause, no culprit will be spared," Arvind Kejriwal, Delhi Chief Minister told media.

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