86-year-old Padgaonkar was cremated at the Sion Electric crematorium with state honours here this evening. Earlier a guard of honour was also given to Padgonakar outside his residence in Sion.
Prime Minister Narendra Modi described Padgaonkar as a doyen of Marathi literature.
"His poetry and writing influenced many. Saddened by his demise," Modi tweeted.
Paying tributes to Padgaonkar on behalf of people of Maharashtra, Chief Minister Devendra Fadnavis said he enriched Marathi literature.
"We have lost a poet who portrayed the stark reality of life and made us fall in love with life," he said.
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Actress Madhuri Dixit, paid tributes, saying "We'd never forget the poem you wrote for me." In the poem, Padgaonkar had described the pangs of not having met Madhuri ever in his lifetime.
Fadnavis and MNS chief Raj Thackeray were among those who visited the poet's residence to pay their last respects.
Born on March 10, 1929 in Vengurla, Sindhudurg district in Maharashtra, he received a Master of Arts degree in Marathi and Sanskrit from the University of Bombay.
He taught Marathi at Ruia College for some years, and then during the 1970-1990 period served as an editor at the US Information Service, in Mumbai.
Along with Vinda Karandikar and Vasant Bapat, Padgaonkar was part of many poetry recitation programmes that were held in Maharashtra in 1960s and 1970s.
He has also written lyrics of many Marathi film songs.
Sung by Arun Date, his songs "Ya Janmawar, Ya Jaganyawar Shatada Prem Karawe", "Bhatukalichya Khelamadhali" and "Shukratara Mand Wara" are well known.