A massive fire broke out on Tuesday Dobhan Bazaar, a small town in Nepal's Taplejung district, and has gutted around 40 houses.

The fire that started from a cloth shop at around 8.30 a.m. spread rapidly, engulfing over half of the town within a few hours, Xinhua news agency reported.

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The houses were connected to each other which made the fire spread easily, a town resident whose brother's house was completely destroyed, told Xinhua.

"Most of the houses were constructed of wood and stones roofed with zinc sheets."

He said different types of shops, hotels and a remittance centre turned into ashes by the fire. The fire was brought under control after four hours. The incident site, which borders Meringden and Aathrai Triveni rural municipalities of the district, is the second biggest market after Phungling.

"This is a huge loss to our place," Ganesh Bahadur Limbu, chairperson of Mringden Rural Municipality, told Xinhua.

"We are holding a meeting with the chief district officer, security forces and the local leaders to ascertain the actual loss." Limbu said, adding that although property worth millions were destroyed, there were no casualties.