Bhubaneswar: Panic struck Bomikhal after a fire broke out in a three-storey building following an explosion on Sunday morning.

People living in the area said the incident took place an hour after police picked up three suspects from the building, which is used as a mess.

Eyewitnesses said they heard an explosion in the building and later saw smoke billowing out the second floor.

"We heard explosions and rushed to the spot and found a portion on fire," said a resident of the area.

"We informed the matter to the fire control room and one fire tender doused the flames," the resident added.

The police, however, suspect the security guard deployed at the building of deliberately setting the room on fire after the police raid.

"The building is has been divided into small rooms and was entirely rented out to students and youths. The security guard, apprehending being summoned by the police as the room was occupied by three suspected criminals, might have set the room on fire. We have summoned the security guard and the house owner for further investigation," said inspector in charge of Laxmisagar police station Dayanidhi Nayak.

The police said they raided the house after getting a tip-off about three criminals staying there.

"All of them have been detained and we are interrogating them to verify their past criminal antecedents," said a police officer.

The police have advised house owners to furnish details of tenants to the police stations concerned. In 2015, the police had had made tenant registration mandatory and had asked house owners to submit a declaration form with the police stations concerned along with details of the tenants.

The police said that the declaration form would have signatures of both the landlord and the tenant along with particulars such as permanent address, occupation of the tenant, phone number of both of them and a photocopy of identity proof of tenant such as passport, driving license, voter card, PAN card or ration card.