The fire started in the afternoon when a woman was cooking at her home. It immediately spread to neighbouring houses and gutted 23 houses, the sources said.
Three fire tenders rushed to the spot and brought the blaze under control after one and half hour, they said.
North Bengal Development minister Goutam Deb visited the area.
The Trinamool Congress Lok Sabha candidate for the Darjeeling seat Bhaichung Bhutia also visited the area.