The incident took place last night when fire broke out in a hut and spread in other huts too, they said.
Three children including Rohit (5), Diwarilal (2) and Shiawati (8) were killed on the spot besides over a dozen cattle, said police.
Later, a fire brigade reached the spot and controlled the situation.
The District Magistrate has announced ex-gratia of Rs 1.5 lakh to the victim's families, official sources said.