Fire broke out at a multi storey building on Rafi Ahmed Kidwai Road on Wednesday morning triggering panic in the area.
Police said that a garments factory is situated on the ground floor of the building. The incident had spread tension as a school is also situated in the same building.
Two employees of the godown were injured in the incident and they were taken to a nearby hospital for treatment.
Local people spotted smoke billowing out of the go-down where various garments were being stocked.
The area was soon covered in black smoke and people started running from one place to another.
People working at various offices located in the building started panicking and left the building. The school was in session when the fire broke out at around 10.45 am on Wednesday.
After being informed, the fire brigade officials rushed to the spot and the five fire-tenders were pressed into action to douse the flame.
Police cordoned off the entire area following the incident.
Local people took part in the rescue operation. They rescued the people who were inside various office rooms and the school children were also removed from the place to prevent any untoward incidents.
The local people failed to douse the flame as they were getting suffocated by it. They, however, managed to restrict the fire from spreading to other rooms.
Five fire-tenders which were swung into the action brought the situation under control.
According to the preliminary investigation, the fire officials suspect that the inflammable materials might have been stored inside the godown and there was no adequate fire fighting machinery there.
The cause of the fire and the extent of the damage are yet to be ascertained.
Preliminary investigation suggests that an electrical short circuit might have led to the incidentPolice have started a detail probe into the incident.