The mishap occurred early this morning when driver of the Xylo car, hired by the Railways to transport its employees, lost control over the vehicle while negotiating a turn near Jaistambh chowk, they said.
The deceased are identified as Dnyanesh Salim Bhosale (17) and Sushama Pramod Bhosale (6).
Police said the deceased and injured belonged to the Pardhi (Nomadic Tribe) community.
The driver of the car has been arrested, police said.