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The fire was noticed at the bar and family restaurant in Eshwaranagar in Manipal in the early hours of Friday. The flames raged as several alcohol bottles, furniture and other inflammable material in the restaurant fueled it, sources said.
A short circuit is believed to have started the fire.
Fire tenders were called in and the fire was doused later. However, the restaurant was completely charred, causing significant damage result in huge financial loss to the promoters of the restaurant, sources added.