Local cops confirmed that people were rescued from rooms and roof of the budget hotel.
Police chief Manoj Verma said: "The death toll has risen to 15, including two children and a woman."
He also said a probe had been launched to investigate the blaze.
The horror scene saw the hotel turn into "a gas chamber and it appears that many people suffocated to death", the chief added.
Terrifying footage on social media showed guests climbing out the windows and onto the rooftop to get away from the blazing inferno.
Aftermath pictures showed firefighters working tirelessly to put out the fiery blaze.
At least a dozen people suffered burn injuries and received treatment as a result of the raging fire.
The Rituraj Hotel was housing 88 guests when the inferno broke out, and has a total of 42 rooms.