Varma, 78, breathed his last at a city hospital early this morning. He is survived by his wife Rupa Ganguly.
In a career spanning many decades, Varma brought to Hindi cinema a touch of subtle humour that could be shared by family audience.
Starting with 'Dharmaputra' (1961) produced B R Chopra, Varma starred in over 100 films winning critical acclaim for many that included 'Angoor', 'Chori Mera Kaam', 'Devar', 'Anupama', 'Golmaal', 'Buddha Mil Gaya', 'Khatta Mitha', 'Naastik', 'Rang Birangi', 'Dil', 'Judaai', 'Andaz Apna Apna' and 'Dil Toh Pagal Hai'.
Varma, who was married to Ashok Kumar's daughter Rupa, turned producer with 'Yakeen' in 1969 and also took to direction two years later with 'Nadaan'. 'Besharam' is also notable among the nearly eight films produced by him.
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He acted in three Marathi films and a Gujarati movie.
A man of convictions, Varma never compromised on his principles and kept away from what he considered cheap comedy.
His last performances were in 'Mere Yaar ki Shaadi Hai' and 'Calcutta Mail', a decade ago after which he retired.
Several Bollywood celebrities like Aamir Khan, Karan Johar, Anushka Sharma, Riteish Deshmukh and Manoj Bajpayee mourned Varma's demise.