Five other youths on the boat, meanwhile, swam to safety, they said.
"Five youths were killed when their boat capsized due to imbalance when one of its occupants started dancing on it last night, according to initial investigations," Superintendent of Police (Bhopal North) Arvind Saxena said.
A youth, identified as Monu Batham, apparently untied the boat of fishing contractor Veru Batham anchored at Kamlapatghat of the lake, after arranging a party with the help of one Manish Ahirwar.
Monu rowed the boat with his nine friends to the deep water where they had a party and apparently consumed liquor.
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The five deceased have been identified as - Vishal Meena (21), Amit Malviya (20), Raj Gaikwad (20) Ajay Ahirwar (21) and Shubham Meena (20), he said.
The five other youths on boat, including Monu and Manish, swam to safety.
The postmortem of the five bodies was underway.
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Meanwhile, Madhya Pradesh Chief Minister Shivraj Singh
Chouhan today condoled the death of five youths saying the boat capsize was a very unfortunate incident.
Chouhan announced a financial help of Rs two lakh each to the family members of the deceased and a high-level probe into the boat capsize, a state government's public relations department officer said.