The incident occurred around 12 noon when a person, identified as Harish, was driving the car from Rajghat towards ISBT.
Four persons, who were sleeping on the pavement, came under the wheels of the car as it veered off the road. Two of them died while two others were injured. They are yet to be identified, police said.
The accused driver claimed that he was trying to save a beggar, who was crossing the road, and swerved to the left. He ended up taking the car over the pavement, they added.
In April, two pavement dwellers were killed and as many injured after they were run over by a car allegedly driven by a class XII student in north Delhi's Kashmere Gate area.