It was alleged that some hoodlums had invaded the palace while the Oba was in it.
The whereabouts of the Kabiyesi was unknown as of 11.30pm when this report was being filed.
Some residents, who spoke with our correspondent on telephone, claimed that the hoodlums strangulated the monarch to death before setting the palace on fire.
They expressed the fear the monarch who was having problem with his sight might have been killed in the inferno.
One of the residents who pleaded not to be named said, "We don't know why those who burnt the palace did so. But the palace was razed down and those people who did it strangulated the Kabiyesi to death before setting the palace on fire. You know that our Kabiyesi was blind."
However, the Commissioner for Information, Mr. Sunday Akere, who confirmed the inferno to our correspondent, said he was not told that the monarch was killed.
He said that may be the monarch was injured but that he did not die.
Akere said: "There was a fire outbreak at the palace of Ilashe this evening and fire-fighters went and put it out. We heard that three young men went to the palace and demanded to see the monarch but they were prevented from seeing him.
"But curiously there was a fire outbreak immediately they left the palace. Fire-fighters were sent there and they put out the fire. The Kabiyesi was not killed but may be he was injured during the fire outbreak."
He said that the state government in collaboration with security agencies was investigating the case to know what caused the fire and get those behind it arrested if it was a case of arson.
It will be recalled that the palace of the monarch of Oba Oke was set ablaze by hoodlums about a month ago during a communal clash between the people of the town and Oba Ile, a neighbouring community.
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