He is survived by his wife Rupa Ganguly, the younger daughter of the late legendary actor Ashok Kumar.
The 78-year-old comic actor was best known for his roles in comedies directed by Basu Chatterji, Hrishikesh Mukherjee and Gulzar.
He has also produced and directed some films including Besharam.
He has won Filmfare Best Comedian Award for Chori Mera Kaam, Chor Ke Ghar Chor and Angoor, the last being directed by Gulzar and still considered one of Bollywood's best comedies.
He was last seen on big screen in 2003 in Calcutta Mail.
Verma breathed his last around 2 a.m. at his home in Pune, the city of his birth from where he graduated in politics and sociology before joining the film industry.
His funeral was held at 12 noon at the Yerawada crematorium.