The fire was spread from the house of one Nathuni Yadav of ward No-3 in the VDC at around 2:00 pm, according to one Mahendra Yadav of the same locality.
All the nine wards in the VDC except two (ward No. 1 and 9) were destroyed in the fire, it is learnt.
The fire had come under control only in the late evening (around 6:00 pm) following the continuous efforts by the locals, the Nepal Police, the Armed Police Force and a fire engine.
It was very difficult to douse the fire due to a strong wind from the west.
The reason of how the fire erupted has not been established yet. The Armed Police Force, the Civil Police and the locals have been making their attempts to put out the fire.
The details of losses by the huge fire are awaited, said Superintendent of Police Rajeshlal Karna of District Police Office.
Meantime, seven houses at Indrapur-7 of Motipur VDC in Banke were turned to ashes and local 26-year-old Ramawati Radh was injured in a fire on Tuesday.
Meanwhile, Prime Minister Dr Baburam Bhattarai has expressed sorrow over an incident of fire took place at Aurahi VDC in Siraha district on Tuesday.
The Prime Minister in a press note today has said that the incident of massive fire occurred in the Siraha villages, reducing around 500 houses to ashes has really saddened him.
In the press note, he said that he has already directed the local administration to shift the people affected by fire to the safety and manage foodstuffs for them.