The incident occurred last evening when the victims were painting an advertisement on the balloon for a local flood light cricket tournament, Janjgir-Champa's Additional Superintendent of Police Vijay Agrawal said.
The event was scheduled to kick-off last night but was cancelled following the incident, he added.
As the balloon burst, the people who were working on it and some of those standing nearby got hurt, he said.
Three persons - Suryakant Vaishnav (44), Bhagwan Singh Dhillo (18) and Mahendra Thawait (60) - sustained serious burns while six others were also injured in the mishap, the ASP said.
A case has been registered in this connection, he said, adding that further probe was on.