A group of students had gone to Shimla and were returning to Chandigarh for their onward journey when the mishap occurred.
The victim students, both in first year of B.A. And in their 20s, were residents of Ghaziabad, police said, adding that in the accident one of the car driver also died.
The collision took place between a taxi and a luxury car. The deceased were passengers of the taxi whereas the car was completely mangled after the high-impact collision, police said.
The deceased have been identified as Kuldeep Kumar and Sahil Kumar, (both students), and Mast Nath from Himachal Pradesh.
In the mishap two students received minor injuries, police said, adding that the passengers of the luxury car fled away from the spot after the incident.