The victims were construction workers and staying at the site when the mishap occurred.
The blaze erupted on the ground floor of the building at around 10.30 pm yesterday, chief fire officer Prabhat Rahangdale said.
The fire brigade personnel doused the flames soon after reaching the spot.
However, the fire led to an explosion in the LPG cylinders kept at the site, causing severe injuries to those present in the building, he said.
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Some locals pulled out 10 persons from the structure before the fire brigade personnel arrived.
Later, the fire brigade team took out seven more persons and rushed all the victims to hospital.
Six persons succumbed to burn injuries at the hospital, Rahangdale said, adding their identities were yet to be established.
The other injured persons were undergoing treatment at the hospital, he said.
The cause of the fire was yet to be ascertained, he said.