Seven persons died in the fire, Inspector General of Police, Gadchiroli Range, ST Bodakhe said.
The rescue team had to struggle to make their way to Bindal Palaza hotel situated in a congested lane in one of busiest markets in the city. 15 fire engines were sent to the spot to douse the flames.
"Rescue work is underway and the fire brigade team is searching if any person is trapped inside the premises," a fire officer said.
There where nearly 15 guests staying in the hotel at the time of the mishap.
One person sustained serious injuries after he jumped from the second floor of the hotel following the fire. He died on way to Nagpur hospital, police said.
On getting information, District Collector Abhimanyu Kale, Superintendent of Police Dilip Patil Bhujbal rushed to the site and supervised the rescue work.
Police officials had a tough time in controlling the crowd that gathered outside the mishap site after the fire.
Those who died in the fire were part of a group who had come to the city for a wedding and were staying at the hotel.
With inputs from PTI
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