
A woman and child were seen attempting to jump while another man was spotted hanging from a terrace before falling.
It is estimated around 120 people were inside the hotel - built around 25 years ago - when the fire started.
According to reports, the fire spread after a short circuit at around 4.30 am.
A fireman stands outside the hotel where a fire broke out in New Delhi, India, February 12, 2019.
The injured were rushed to three hospitals including the Ram Manohar Lohia Hospital (RML).
Videos recorded on their cell phones by the eyewitnesses showed flames emanating out of the top floors of the hotel building.
"Seventeen people are no more, they died because of suffocation, not fire", said deputy fire chief Virendra Singh, adding that 35 people had been rescued.
"When the fire tenders reached the spot, flames were leaping out of the building. All norms were followed here", Mani said, according to news agency ANI.
A call about the fire was received at 4.35am and 24 fire tenders were rushed to the spot, a senior officer from the Delhi Fire Service said.
Delhi minister Satyendra Jain said the district magistrate has ordered an inquiry into the fire incident.
Of the 13 bodies that were taken to RML hospital, ten were identified - three from Kerala, one from Gujarat, and two from Myanmar.
Later, he tweeted: "Fire in Karol Bagh hotel".
Fire was reported on the third and fourth floor, but the blaze spiralled down as well. There were 53 people in the 45-room hotel, officials said. The government also ordered a magisterial probe into the incident.
Deeply saddened by the loss of lives due to a fire at Karol Bagh in Delhi.
The hotel developer had a permit from the fire department to build up to four stories - the standard height in central Delhi. "The status of the staff who jumped is yet to be known".
Delhi authorities often launch raids to enforce building codes, fire safety measures and evacuation procedures.
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