A person was taken to a hospital with minor injuries, police said.
“We received a fire call regarding fire in Jungle Jamboree Restaurant near Rajouri Garden Metro Station at 2.01 pm. 10 fire tenders were immediately dispatched to the site to control the blaze,” Delhi Fire Services chief Atul Garg said.
No casualties have been reported so far and the cause of the fire remains unknown, he added.
Thick smoke engulfed the area, creating panic among the shopkeepers.
Many videos of the incident went viral on social media showing people jumping off to an adjacent building to save their lives.
Sources said there were more than 25 people in the building at the time of incident.
“It was around 2 pm, when many shopkeepers witnessed black smoke billowing from Jungle Jamboree restaurant. We immediately informed the police and fire brigade teams. More than 25 people jumped from the open sitting area to a nearby building’s terrace to save their lives,” a shopkeeper, Ghanshyam Agarwal, said.
Meanwhile, authorities have cordoned off the vicinity to facilitate firefighting operations.
Delhi Police in a statement said the building houses several shops on the ground floor, a restaurant named Jungle Jamboree (which was closed), and an institute, MAAC Rajouri, on another floor.
“The damage is lesser on the ground floor establishments,” it said.
Police said eight fire tenders have been used so far and the fire is under control.
The owners of establishments have been asked to account for all the people who were in the premises at the time of the fire, they said.