Quoting eyewitnesses, India Today reported that the car standing in front of MCD office at Aurobindo Marg in Green Park went up in flames soon after the driver reported a spark from the rear side of the car as he tried to switch on the ignition.
The fire completely destroyed the car as fire tenders took too long to reach the spot. Fortunately, no one was hurt in the incident.
This comes despite Tata Motors' repeated assurances that the world's cheapest car was safe.
The first case of a Nano catching fire was reported in Mar 2010 while on its trip from the showroom to the customer's home.
In Apr 2010, yet another Tata Nano caught fire in Boriyavi village in Gujarat's Anand district on National Highway 8, when a fleet of 11 Tata Nano cars was being driven to a dealer in Ahmedabad.
Read: Gujarat: Another brand new Nano catches fire
Even before these cases, there were three other such cases of fires recorded.
In the wake of these fires, the auto giant had carried out an investigation.