MUGU, Jan 22: A fire gutted two houses at Gamgadi, the district headquarters, on Sunday afternoon.
The fire started from a house of Ganesh Bhatta at around 2 pm and later spread to the house of Norbel Lama.
According to a tenant Anil Basyal, the fire was triggered by an electric short circuit.
According to a preliminary report, properties worth Rs 700,000 were gutted by the fire.
DSP at District Police Office, Sharada Prasad Chaudhary said the reason of fire and the actual loss incurred is being investigated.
Police and locals had contained the fire.
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