N S Bundela, Joint Commissioner of Police (Central) said two children were rescued and taken to hospital where they were declared brought dead.
"They were passing by the road with their mother when the building collapsed and the two bothers got trapped under the debris.
"A case will be registered in the matter and legal action will be taken accordingly," he said.
A car parked nearby was severely damaged as the debris from the building fell on it. The locals who gathered at the spot to help with rescue operations were later removed from the area.
Teams of local team, MCD, NDRF among others are at the spot to undertake rescue operation.
Seven fire tenders were rushed to the spot for rescue operations, officials said.
The Delhi Fire Service received a call about the incident at 11.50 am, said Atul Garg, the director of DFS.
Delhi Chief Minister Arvind Kejriwal said he is closely monitoring the situation.
"The incident of building collapse in Sabzi Mandi area is very sad. The administration is engaged in relief and rescue work. Through the district administration, I am myself monitoring the situation," he tweeted in hindi.
AAP MLA from Timarpur Dilip Pandey also took twitter and said local administration along with party workers are engaged in rescue operations.
"Very unfortunate incident, 75-year-old building of Laxman Prasad ji collapsed in Malkaganj. On the spot, QRT team of Delhi government, fire brigade team and local administration, we and AAP workers are engaged in rescue work.
"Two people were evacuated safely. About 7-8 more people feared to be trapped inside," he tweeted in hindi.
The ground floor of the building was being used for commercial purpose while the rest was residential.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)