Varma died at his residence in Pune, aged 78.
The actor is known for his memorable roles in films like 'Chor Ke Ghar Chor', Sanjeev Kapoor-starrer 'Angoor', 'Gol Maal', 'Khatta Meetha', 'Naastik', 'Rang Birangi', 'Dil', 'Judaai', 'Andaz Apna Apna' and 'Dil Toh Pagal Hai'.
Bollywood stars took to Twitter to express their grief. "RIP Deven Verma... Your straight-faced impeccable comic timing still doesn't have a successor," Johar tweeted.
Anushka, while recalling her favourite moment from Varma's 'Andaz Apna Apna', wrote, "RIP Deven Verma... How much I love his scene in 'Andaz Apna Apna' 'Main betiyon ko chudiyaan pehnaoonga...Aap ma ko'."
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"Sad to hear that the great Deven Verma ji passed away. My heartfelt condolences to his family...RIP," tweeted Bajpayee.
'Fashion' director Madhur Bhandarkar, said, "Sad to hear Deven Varma-ji has passed away. A breakthrough humorist & baadshah of subtle comic timing, he made comedy look classy. RIP, Sir."
"RIP Deven Varma Ji, I grew up on your performances!" said actor Tusshar Kapoor.