No causality was reported in the incident, police said.
Though exact figures of the loss were yet to be confirmed by the management, general manager of the warehouse Ramesh Shrestha claimed property worth Rs. 3 billion was gutted.
The warehouse was used to store CG brands of electronic goods and home appliances.
Items including mobile phones, TV sets, DVDs, washing machines, vacuum cleaners and refrigerators of brands like LG, Toshiba, Godrej, Rico and TCL, were stored in the warehouse.
Around a dozen fire brigades and more than 150 personnel of the Armed Police Force, the paramilitary troupes, and equal number of personnel from Nepal Police were deployed to douse the fire.
Since the warehouse lies close to a residential area in the rear, houses lying within a 100-metre periphery were evacuated.
Meanwhile, police have arrested some 20 people for stealing mobile phone sets and other electronic goods from the warehouse while others were busy controlling the fire.