The blaze broke out before dawn at Hotel Arpit Palace in a congested part of central Delhi. A fire department official said some fire extinguishers were found used suggesting people trapped inside tried to douse the fire in a bid to escape.
Three people jumped from the blazing structure even as 25 fire tenders rushed to the spot after receiving a call at 4.30 am.
Paul says the fire engulfed most of the five-storey hotel.
Mandeep Singh Randhawa, deputy police commissioner, said authorities are still investigating what sparked the fire. Most of the victims were sleeping when the fire broke out, believed to have been caused by a short circuit.
Television showed pictures of flames leaping from the top floor.
The injured were taken to hospitals, but their medical conditions were not immediately known.
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The disaster is the latest of its kind in India, where poor health and safety standards - especially in hotels and facilities for the poor - are all too common. Almost 35 people were rescued safely.
A number of hotel guests have been killed, including a child, when they were suffocated in smoke from a severe fire that ripped through a hotel. "There was wood panelling on the corridor because of which people couldn't use corridors to evacuate; two had jumped off the building".
In 2017, 14 people were killed, also in Mumbai, when a huge blaze tore through a popular restaurant.
Last week, a fire broke out in a hospital in Noida, forcing an emergency evacuation of scores of patients and other people.
Delhi's urban development minister Satyendar Jain said authorities appeared to have been negligent in enforcing building laws in the surrounding area.
Generally, four floors are allowed for such establishments, the minister said.