The fire caused a wall of the house located at Kumardubi village, about 85-km from here, to collapse and some people are feared trapped under it, the officer-in-charge of Barsole police station said.
The fire, which caught at around 4 pm, caused a LPG cylinder stored in the three-storied house to burst and the flames have spread to the adjacent houses, the police said.
East Singhbhum Deputy Commissioner Amit Kumar said one person was killed and two others were severely injured in the inferno.
"Two fire engines are at the spot, and two others have been rushed from Jamshedpur and one from Ghatsila," Kumar said.
Local BJP MP Bidyut Baran Mahato, Ghatsila sub-divisional police officer Rajendra Dubey have rushed to the spot.