He was 82.
He breathed his last in the early hours and he was cremated around 1 pm, sources said.
Ganguly is a noted director and screenwriter, who worked in Hindi cinema from 1970s to the 90s.
He is best known for Jaya Bhaduri starrer, "Kora Kagaz" and "Tapasya" both of which won National Award.
His other notable films are "Saaheb", " Trishna", "Khandaan", "Humkadam", "Pyar Ke Kabil", "Balidan" (Bolidan -1990, Bengali), "Dushman Devta" among others.
His daughter Rupali Ganguly is a television and theatre actress and his son Vijay Ganguly is a director and choreographer.