At least 17 people, including women, were burnt to death and several others suffered burns after a major fire ripped through a two-storeyed cracker factory in outer Delhi's Bawana industrial area on Saturday evening.

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The police have registered a case and said more bodies might be recovered as at least half a dozen people were said to be still trapped inside the building.

It was a grade four fire that means it was not big. But explosions took place inside the cracker factory that resulted in casualties.

The fire also engulfed other factories in the neighbourhood. But those killed worked at the factory that's been found to be illegal, according to the area DM. It did not even have a cracker licence.

The fire department received a call around 6:20 pm about a fire mishap at F Block of the industrial area. Six fire tenders were initially rushed to the spot.

"Fire had broken out at the basement, ground and first floor of the factory. More fire tenders were rushed to the spot," said Atul Garg, Chief Fire Officer.

Images from the factory were heart-wrenching, showing bodies hugging each other.

The cause of the fire was not immediately known but sources suspect that a short-circuit could have been a trigger.

"Four bodies were pulled out initially... they seemed to have died of suffocation. Twelve were recovered later... they died while trying to jump out of windows," said Rajneesh Gupta, Deputy Commissioner of Police (Rohini District).

Prime Minister Narendra Modi took expressed his anguish over the tragedy. "Deeply anguished by the fire at a factory in Bawana. My thoughts are with the families of those who lost their lives. May those who are injured recover quickly," he wrote on Twitter.

Meanwhile, Delhi Health Minister Satyendar Jain ordered an inquiry in the fire tragedy. "Learnt about a serious fire incident in a private factory at Bawana. Several casualties. Monitoring the situation. Have ordered an enquiry," he tweeted.

Union Health Minister JP Nadda also directed his Health Secretary to provide immediate assistance to victims and also asked AIIMS' trauma centre to be on alert.