It said rescue and search operations are underway and more than 40 people have been taken to nearby hospitals for treatment.
The Indian Express and other local media reported that many of those killed were tourists from African countries who had come to the city for treatment.
Police said the fire was finally brought under control with the help of eight fire tenders.
“All concerned agencies are deployed at the spot to ensure all possible assistance to the affected people,” the force said.
Prime Minister Narendra Modi described this incident as “sad”.
“My condolences to those who have lost their loved ones,” his office said in a statement on Twitter.