The police have booked Hratesh Sanghvi, Jigar Sanghvi and Abhijeet Manka, who run '1 Above' pub in Mumbai's Kamala Mills, for culpable homicide not amounting to murder.
The municipal body has directed its officials to form teams to ensure that all the restaurants are fire safety compliant in view of the New Year celebrations.
The Sanghvi brothers were arrested on late Wednesday evening, the third owner of the club Abhijeet Mankar was arrested in wee hours of Thursday.
They were present in the pub when the blaze occurred, but fled without helping the guests, the official said.
The Brihanmumbai Municipal Corporation initiated an inspection drive of 624 restaurants, eateries and malls across the city and its suburbs and razed illegal, unauthorised structures at 314 sites.
The fire broke out shortly after midnight on the third floor of the four-storeyed building on Senapati Bapat Marg, a commercial hub of the city, a civic official said.