Deputy Superintendent of Police Salkaldeo Ram said, no one was injured in the incident.
Residents and shopkeepers woke up from sleep after they were alerted by neighbours who noticed smoke billowing out from the shops.
By the time four fire-fighters reached the spot, 40 shops were gutted.
Asked about the cause of fire, the DSP said, preliminary investigation suggested that the fire broke out due to short circuit.
Grocery items and garments kept in the shops was reduced to ashes.