Anti-terror wing and Delhi Police Special Cell officials reached the spot immediately after the blast.
The preliminary reports say that the blast took place when a jute bag of fire crackers being carried by a man exploded. The windows of nearby shops around the spot also got broken.
Home Minister Rajnath Singh spoke to Delhi Police Commissioner Alok Verma over the explosion that caused panic among shopkeepers and residents in the area.
Probe has been launched to find out the exact reason for the blast. The area has been cordoned off by the Delhi police. Most details are awaited.