The incident took place in Kailasnagar area on Sunday night and the alleged accused, identified as Sushil Pandit was arrested on Monday by Narpoli Police.
According to a complaint filed by Pandit's wife Poonam, the accused was unemployed, an alcoholic and had also taken to drugs which led to frequent quarrels in the house.
On Sunday, when Pandit returned home heavily drunk, a fight erupted again. Enraged, Pandit allegedly roughed up his children badly and threw a container of burning charcoal on them leaving them seriously injured.
When Poonam's brother who lived in the neighbourhood came to the childrens' rescue, he was also allegedly beaten up, police said.
The trio -- Laxmi (5), Sunil (3) and Krishna (one-and-a half years) were initially rushed to a hospital at Bhiwandi and later shifted to Thane Civil hospital, where they are undergoing treatment for burns, police said. An offence under sections 307, 324 and 504 of the IPC has been registered against the accused, police added.