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A senior official of the Delhi Fire Services said information regarding the blaze near pillar number 12 of Gokulpuri village was received at 1.03 am.
Thirteen fire-tenders were rushed to the site.
Seven charred bodies were recovered, the official said, adding that around 60 shanties were affected and 30 of those gutted in the fire. Additional Deputy Commissioner of Police (northeast) Devesh Kumar Mahla said information about the blaze was received around 1 am, following which police and fire officials reached the spot.
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Delhi Chief Minister Arvind Kejriwal expressed grief over the incident.
”Heard the sad news early in the morning. I will go to the spot and meet the affected people personally,” he said in a tweet in Hindi.