Hundreds of low-income families are now living under the sky, after a devastating fire destroyed their homes and all other belongings.

The fire which broke out last Monday in capital's Madhya Badda, although did not claim their lives, but snatched away all that they owned.

Boarders of Bhai Bhai Boarding, a two storey tin and wood structure erected on a pond, had to helplessly stand by and watch their homes burn to ashes as 16 units of firefighters struggled to douse the fire.

A few hundred tin shanties that also housed grocery stores, tea shops and temporary restaurants were gutted in the fire that broke out around 12pm on Monday.