According to fire officials, they received information regarding the blaze in the four-storey hotel at 7.40 am.
Health official Haydar al-Zamili told a leading media outlet that there are fears people are still trapped inside the ward, which reportedly has space for 60 patients.
Interior Ministry spokesman Tariq Arian said the fire began when a spark set one fuel tanker ablaze.
According to Fire officials, the blaze started around 11.30 am in the warehouse located behind the Afzalgunj bus station.
According to investigators the home was registered as a non-profit organisation that provided charity for the elderly.
A major fire erupted at the City Center Mall in Mumbai Central area at 8.50 pm on Thursday.
South Korea's Ministry of the Interior and Safety said at least 88 people were treated for minor injuries such as scratches or lightly inhaling smoke.
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