While Kiranjit Kaur succumbed to her injuries, Karamjit and his two children were admitted to the Post Graduate Institute of Medical Education and Research (PGIMER) in Chandigarh.
Deputy superintendent of police Gurmail Singh said according to statements of family members and villagers, a commotion prevailed in the house after Karmajit's wife stopped him from drinking.
As per police, Karamjit's family said the couple had heated arguments late Tuesday night after which he allegedly set self, wife and children on fire. The matter was reported to police on Wednesday.
The police said furious on being stopped from drinking, Karamjit poured kerosene over himself and then his wife and children while they were sleeping in a room on the first floor of their residence and set them ablaze.
Seeing flames coming out of the room, villagers raised an alarm and managed to douse the fire with the help of other members of Kamaljit's family, who were sleeping downstairs.
The four were rushed to the Sangrur civil hospital from where they were referred to Government Rajindra Hospital in Patiala.
Kiranjit died in the Patiala hospital, while Karamjit and his children were shifted to PGIMER. The children received 80% burns and their condition is stated to be critical.