"The building was once used to be a house to staffers of the defunct factory," Madhavnagar region City SP Vijay Dabur told PTI.
He said some labourers started living in the structure of late, which was lying empty since a long time.
The incident happened in the evening, the SP said.
The deceased are identified as Sunita (8) and Jairam Bagari (24) while one person, identified as Jivan, sustained injuries and admitted to a government-run hospital.