The 44-year-old MLA was driving a car when the accident occurred at around 8.30 PM, party sources said, adding that details of the mishap are awaited.
Zilla parishad member Balasaheb Mangulkar, who was also in the ill-fated vehicle, sustained serious injuries. Doctors said he is now out of danger and admitted to a local private hospital.
Nilesh was rushed to the same hospital where doctors declared him dead, they said.
Maharashtra Chief Minister Prithviraj Chavan and MPCC president Manikrao Thakre will be going to Yavatmal tomorrow, as Nilesh was a close associate of Chavan.
An active member of the Rahul Gandhi brigade, he was one of the five Youth Congress leaders who were given party tickets by Rahul during the last Maharashtra Assembly polls.
Son of late Balasaheb Deshmukh Parvekar and Kantabai Deshmukh, Nilesh is survived by his wife, two young daughters, mother and younger brother Yogesh Deshmukh Parvekar.
The Congress leader was also one of the Directors of the State Housing Finance Corporation.