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The fire in the Mandi area of Poonch broke out from a shop at the Loaran bus stand around 4.45 am and engulfed nearby shops, they said.
Fire tenders rushed to the spot were able to put off the blaze after several hours of hectic efforts, the officials said.
Nine shops were damaged, and the cause of the fire is being ascertained, they said.
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Fire and emergency services personnel doused the flames believed to have been caused by an electrical short-circuit, they added.