The blaze in the building, located in upscale Colaba in South Mumbai, started in the first floor at around 4 PM, they said, adding the flames were contained after almost five hours of fire fighting operation.
"The building was immediately evacuated and no casualties were reported," said Chief Fire Officer Prabhat Rahangadale.
"We have been able to contain the flames and not allow them to spread to adjoining buildings. The main staircase collapsed making access into the old building very difficult," he said.
According to locals, the blaze started due to a short- circuit in a hotel on the first floor of the structure. Rahangadale, however, said the exact cause will be known only after a probe.
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As many has 14 fire tenders were initially pressed into service. Four fire tenders from Naval Dockyard along with fire fighting equipment later joined the operation.
The building has several guest houses, which were occupied by foreigners. One of them, Mustafa Elbeder, who is from Sudan, said, "I was in my room on the second floor, when somebody knocked my door and asked me to come out. I rushed down and then realised a fire has broken out in the building."
Citizens from Somalia and Ethiopia were also residing in the building.