The injured were rushed to nearby hospitals, the officials said.
The bus driver claimed that he lost control over the vehicle as its brakes failed.
The fair was being held at Chohal, 15 km from Hoshiarpur town and 140 km from here.
Chohal is along the Punjab-Himachal Pradesh border, and a number of people take the highway from Hoshiarpur to Chintpurni, famous for a Hindu temple, in neighbouring Himachal Pradesh.
Punjab Chief Minister Parkash Singh Badal expressed deep shock over the tragic accident.
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