Some 700 huts were gutted in a massive blaze that broke out at in Gurugram's Nathupur village.
The cause of the fire, which erupted in the intervening night of Friday and Saturday, is suspected to be electrical short-circuit.
Of the 700 huts, 500 were completely gutted.
Fire personnel evacuated residents from the huts and it took them about five hours to control the fire.
No casualties or injuries have been reported.
According to fire officials, they received a call of the incident at 2.08 am.
They suspected that the fire incident took place due to illegal electric supply which cause a short-circuit in the area and it spread rapidly to other huts.
Soon the entire area was engulfed in flames.
I.S. Kashyap, assistant divisional fire safety officer said, around 15 fire tenders were reached the place and brought the situation under control in five hours.
Fifteen fire-tenders from the Sector-29 fire station, Udyog Vihar fire station, Sector-37 fire station, Bhim Nagar fire station and from the DLF had rushed to the spot.
"Teams of several fire personnels were deployed in the fire-fighting and evacuation operations. Most probably the incident was caused by an electric short-circuit," Kashyap told IANS.
"There was some property loss to residents but no death or injuries were caused. The residents are daily wage labourers working at building construction sites," he said.
"Timely rescue operation led by the fire personnels saved hundreds of lives. It is expected that hundreds of people having living in illegal huts erected by local residents on a 4-5-acre land at Nathupur village for the last several years. These two-storey huts are covered with plastic covers, tarpaulin sheets, wood and bamboo. These materials were another reason for the fire to spread across the area very rapidly," Kayshap added.