The matter was raised by Dr Govind Singh and Arif Aqueel (both Congress) and BJP's Vishwas Sarang through a call attention motion.
The members alleged that though local people had complained about the dilapidated condition of the overhead water tank on a number of occasions, the Bhopal Municipal Corporation (BMC) officials did not take any preventive measure, resulting in the accident.
Aqeel demanded a compensation of Rs 10 lakh each for the deceased persons and a government job to their kins, besides repairing of the damaged houses.
Gaur said in his statement that the tank was built in 1989 and through it water was being regularly supplied to the local people.
He denied that the water tank was in a dilapidated state and claimed that the concerned employees were regularly examining it.
However, the Minister said that because of wastage of water by the local residents near the tank, its foundation became weak and it collapsed.
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Gaur said so far the kins of the deceased were given Rs two lakh compensation each under different heads while BMC employees have donated their one-day salary and corporators their one month's honorarium to them.
He said that this will amount to a total of Rs 22 lakh which will be disbursed among the affected persons.
The minister also informed that an inquiry has already been ordered in the accident and after getting the probe report action would be taken against those responsible for it.
However, expressing displeasure over the statement of Gaur, the Congress staged a walkout from the house.