Superintendent of Police SMH Mirza said the blast took place in the house at Khagragarh locality of the town in which one person, Shakil Ahmed, died on the spot and two others were injured.
Ahmed was originally from Karimpur in Nadia district.
One of the two injured, Sovan Mandal, died during treatment at Burdwan Medical College and Hospital later, officials in the hospital said.
The other injured, Hasan Saheb, hailing from Lalgola in Murshidabad district, was also admitted in the same hospital in a serious condition, officials said.
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The police also seized some half-burnt papers from the spot.
It was not yet clear how the explosion took place, police said, adding, bomb squad personnel have arrived on the spot.
Besides the three victims, two women and as many children were there in the house which was not much damaged in the explosion.
The SP was questioning the two women -- wives of Shakil Ahmed and Hasan Saheb, police said.
Owner of the two-storey house, Hasan Chowdhury, who lives in another house across the road, said he had given the first floor to Shakil Ahmed, the deceased, on a monthly rent of Rs 4,700 but he did not know the identity of the two others.
Shakil Ahmed's wife Rumi Bibi said her husband and she were staying in the house for about three months while Amina Bibi, wife of injured Hasan, said she was there for about one and a half months.