Videos show some people jumping from the first and second floor to escape the fire.
Eight people were killed and several others injured after a massive fire broke out at an electric scooter showroom and spread to a hotel on the upper floors of the multi-storeyed building in Telangana's Secunderabad late last night.
Early investigation suggests that a short circuit in the basement of the building, which was used by the showroom owner to store the electric scooters, caused the fire.
The short circuit reportedly occurred when the batteries were being charged, sources said. The fire soon spread upwards to Hotel Ruby Pride, where at least 22 guests were staying.
A power generator and five domestic gas cylinders were also placed near the electric scooters in the basement when the incident occurred, officials said.
"It appears there are 23 rooms in all the four floors in the hotel. The smoke traversed through the staircase from the bottom up to the top floor. Some people who were sleeping in the first and second floors came to the corridor through the thick smoke and died," said CV Anand, Police Commissioner, Hyderabad.
All the eight people seemed to have died because of asphyxiation caused by the smoke, police said,
The Fire Department rescued several people using crane ladders, while a few locals also joined in and helped in the rescue operations, officials said. Videos also show some people jumping out from the hotel windows in a bid to escape the fire.
The injured have been shifted to various hospitals of the city for treatment and the fire has been brought under control, Mr Anand said.
"The nature of the accident was such that everyone was engulfed in thick smoke. There was zero visibility, so they could not go towards the stairway,'' DCP North Zone Chandana Deepthi told NDTV.
Officials said the water sprinkler system in the building did not work when the fire broke out - which is also being investigated.
A case has been registered against the owner of the electric scooter showroom, who also owns the hotel, police said. Police are also investing if he had permission to use the basement as a godown for EVs.
Telangana Home Minister Mohammad Mehmood Ali condoled the loss of lives and said a probe has been ordered to ascertain the exact cause of the fire.
"Fire brigade teams tried their best to rescue people from the lodge but due to heavy smoke, some people died. We are probing how the incident happened and a case has been registered," he said.
Prime Minister Narendra Modi in a tweet announced a compensation of Rs 2 lakh each for the family members of the people who died in the mishap, and Rs 50,000 each for the injured.
The state government has also announced a compensation of Rs 3 lakh each for the families of the victims.