Those killed included two minors and five senior citizens. Most of them died due to suffocation, police said.
The incident occurred as a huge crowd gathered at the residence of Syedna, who had died yesterday aged 102 after a cardic arrest.
Lakhs of his followers joined the final journey of the spiritual leader, who was laid to rest at Raudat Tahera mausoleum here at Bhendi Bazar. His son and successor, Syedna Mufaddal Saifuddin led the Namaz-e-Janaza, the prayer for the departed soul.
President Pranab Mukherjee, Prime Minister Manmohan Singh and leaders of various political parties condoled his death.
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Mumbai Police Commissioner Satyapal Singh said most of the deaths occurred due to suffocation as a massive crowd of mourners got stuck in the narrow lanes and the gates to Syedna's residence 'Saifee Mahal' were closed.
"Some fell unconscious. Gates were closed because of which some people fell on each other. As the doctors are claiming, cause of the death was suffocation," he said.