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Police and officials of the fire department said it is suspected that LPG was being illegally filled into the cylinders from a tanker.
Following the explosion, a couple of buses belonging to a nearby college also caught fire, they said.
The incident occurred around 10:30 pm and preliminary information suggests that four to five LPG cylinders exploded, the officials said.
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An official from the Pimpri Chinchwad fire department said fire tenders and water tankers were promptly dispatched to the scene and they successfully brought the fire under control.
He added that the loud explosions triggered a panic among the locals.