"Two more children are believed to be trapped under the debris. Three people who suffered injuries have been admitted to a nearby civic hospital," an official of the Brihanmumbai Municipal Corporation (BMC) disaster management cell said.
Rescue operations by the fire brigade personnel and the National Disaster Relief Force (NDRF) were on till late in the evening and officials feared more casualties.
The dead have been identified as Chandanben Kantibhai Patel (50) and Sudha Sridharan (32), a BMC official in its disaster management cell said.
The dilapidated building fell on the adjacent chawl, trapping several people under the debris, the official said.
The building was served with demolition notice in 2007, 2008 and 2010, a senior BMC official said.
"However, the matter was taken to court and the demolition was stayed," the official said.