The death toll due to wall collapse in Pimpripada area of Malad East rose to 21 on Tuesday.
A total of 78 people have also been injured in the incident which occurred due to heavy rainfall.
Additional Municipal Commissioner of Brihanmumbai Municipal Corporation (BMC), Ashwini Joshi said the state government will provide 5 lakhs as compensation to the families of the people killed in rain-related incidents while the BMC too will pitch in a similar amount.
"The state government has promised a sum of Rs 5 lakhs to the families of those who died in Mumbai, including the victims of the wall collapse in Malad. The state government has also urged BMC to give a similar sum to the victims. Meanwhile, we are taking care of all expenses related to the treatment of the injured people," Joshi said at a press conference here.
Maharashtra Chief Minister Devendra Fadnavis and Minister of State for Urban Development Yogesh Sagar visited Shatabdi Hospital to meet the injured.
Fadnavis also took stock of the situation in the rain-drenched city during a visit to the Brihanmumbai Municipal Corporation (BMC) control room.
Earlier, the Chief Fire Officer who is engaged in carrying out relief work at the site of the wall collapse said, "We rescued a woman, trapped below a body. We used the best equipment, rescue in such tight spaces is very tough."
National Disaster Response Force (NDRF), fire brigade and police had rushed to the spot to rescue those trapped under the debris.
Thirteen people have been admitted to the trauma centre at Jogeshwari and Shatabdi Hospital in Kandivali.
Some people were also rescued by the public before the arrival of the fire brigade and NDRF team.
( With inputs from ANI )