Sadashiv Amrapurkar was hospitalised at the Kokilaben Dhirubai Ambani Hospital here.
"He passed away at 2.45 (a.m.)," Rima Amrapurkar told IANS.
"His cremation will take place in his hometown Ahmed Nagar tomorrow. Today (Monday) his body will be kept at the Bhaidas Auditorium for the people to pay their last respect," his daughter said.
Sadashiv, 64, is survived by his wife and three daughters.
Prime Minister Narendra Modi condoled the actor's death.
"We will remember Sadashiv Amrapurkar as a versatile actor, popular across generations. RIP. My deepest condolences to his family," Modi tweeted.
During his career, Sadashiv won two Filmfare awards -- in 1984, he won the award for the best supporting actor for "Ardh Satya" and in 1991, the best villain trophy for his portrayal of a ruthless eunuch in "Sadak".
The actor is also known for his scintillating performances in "Mr. India", "Aankhen", "Ishq", "Coolie No. 1" and "Gupt: The Hidden Truth" among others.