Three people were killed and four injured in a mysterious blast in a village in India's northern Rajasthan state Thursday that villagers claim was caused by a meteorite, news reports said.

Residents of Banchola village in Bundi district, about 200 kilometres south of Rajasthan capital Jaipur, said the victims were sitting with some iron scrap in an open field when an "object" fell from the sky and hit them, IANS news agency reported.

"The matter is under investigation. We know that there was a blast but looking at the crater it does not seem that it happened due to a meteorite," a Bundi police official was quoted as saying by IANS.

He said the crater was just 8-10 inches in diameter and two inches deep. A team from the state-run forensic science laboratory in Jaipur was collecting evidence from the site, the official said.