The news came in during the early hours of Tuesday and some of the celebrities have taken to social media to express their grief over her death.
Her co-star in 1992's 'Khuda Gawah', Amitabh Bachchan praised her for her contribution to the Indian film industry.
In his tweet, Bachchan also revealed how her age and illness has caught up with her in her last few years.
The 75-year-old actor tweeted, "T 2735 - Shammi Aunty .. prolific actress, years of contribution to the Industry, dear family friend .. passes away ..!! A long suffered illness, age .. Sad .. slowly slowly they all go away .."
T 2735 - Shammi Aunty .. prolific actress, years of contribution to the Industry, dear family friend .. passes away ..!!
— Amitabh Bachchan (@SrBachchan) March 6, 2018
A long suffered illness, age ..
Sad .. slowly slowly they all go away .. pic.twitter.com/WYvdhZqo8X
Ex-member of Parliament and sister to Sanjay Dutt, Priya Dutt posted a throwback picture of 'Shammi aunty' along with her mother Nargis.
She wrote, "Shammi, aunty to me and a great actor of yesteryears passed away today. She was my mother's dear friend and someone we all loved very much. May her soul rest in peace and her laughter and contagious smile rock the heavens. Be In peace with your friends".
Shammi, aunty to me and a great actor of yesteryears passed away today. She was my mother's dear friend and someone we all loved very much. May her soul rest in peace and her laughter and contagious smile rock the heavens. Be In peace with your friends pic.twitter.com/jFfpmUfVoP
— Priya Dutt (@PriyaDutt_INC) March 6, 2018
Earlier, the actress was known to play pivotal roles in popular TV shows such as 'Zabaan Sambhal Ke', 'Kabhi Yeh Kabhi Woh', 'Dekh Bhai Dekh', and 'Filmy Chakkar', alongside Indian cinema.
She was last seen in Farah-Khan-Boman Irani's outing, 'Shirini Farhad Ki Toh Nikal Padi' in 2013.
As per various reports, her last rites will be performed in Mumbai in the noon hours of Tuesday.