The fire broke out in the 'Khadi Market Complex' in Bandipora town, 55 km from here, in the wee hours resulting in damage to the complex and three nearby residential houses, a police spokesman said.
An official of Fire and Emergency Services said 17 shops and several rooms used for residential purposes within the U-shaped complex were damaged by the fire which was apparently caused by electrical short circuit.
The fire spread to an adjacent building housing six shops each on ground and first floors and some residential houses, he said.
Five ready-made garment shops and three residential houses were completely damaged while rest were partially affected, he said.