The inferno has displaced 90 families at Phungling Bazzar, Taplejung district headquarters.
Over four dozen houses have been burn down by the massive fire. The fire was under control with the help of fire brigades from Ilam and Jhapa district on Tuesday morning.
The fire had started from Purbeli Hotel in Takme Danda on Monday evening that spread through destroying over 35 houses including dozens of government offices, non-government and shops in the district head-quarter.
Lack of water and strong winds have made difficult to douse the fire.
The local authorities have started providing reliefs to the fire victims.