Mourners included film director Mahesh Bhatt, actors Danny Denzongpa and Chandrashekar.
Following claims from several relatives, police finally handed over the actress's body to her cousin Farhad Sultan Babi from Balashinore in Gujarat.
Babi, found dead in her apartment here Saturday, was buried next to her mother's grave at the cemetery in Santacruz.
"Not many actors from the industry came forward as she had complained against many," said a film industry insider who did not want to be named.
"The film industry should come forward and pay respect to her. It would be just not right if they ignore her like this," tells social activist and film director Ashok Pandit.
When no one from Babi's family initially claimed her body, her former boyfriend Mahesh Bhatt came forward and said he would carry out the last rites.
Ashok Pandit too asked the film industry to come forward for her funeral and to pay respect to her.
However, many of Babi's old friends, including some from the film industry, and distant relatives had approached the police to take custody of her body.
There was some confusion as a few Christian priests came forward and claimed she had wanted her last rites to be performed in accordance with Christian rituals.
According to Babi's relatives, her assets, including her house and property in Junagadh, were estimated to be worth millions of rupees.
The police have sealed Babi's flat and are conducting an investigation, officials said.