Around 12 fire tenders were pressed into service to douse the flames that broke out at the bazaar around 4:30 AM today, Parade Police Station in-charge, A P Verma said.
Since most of the shops here are of plastic and wood, the fire spread rapidly.
It also engulfed the hut of a security guard, whose family was inside. The guard's daughter, who was asleep, was burnt alive while his son and wife suffered serious injuries, he further said.
Provincial Armed Constabulary (PAC) and police have also been deployed in the area.