Over 25 people were injured in the incident and some more people are still feared trapped inside the debris after adjacent buildings collapsed in Chandni Mahal area at around 8 pm yesterday.
"Two more persons have died. The toll has risen to seven," Sudhir Yadav, Joint Commissioner of Police (Northern Range), told PTI.
Rescue operations were continuing in the area but narrow lanes were hindering the pace of the process even as MCD City Zone Deputy Commissioner Krishna Kumar began his probe into the incident.
Kumar has been asked to submit his preliminary report by this afternoon and the final report within three days.
The collapse prompted Delhi government to blame MCD, saying a tragedy of this kind was "waiting to happen" in the area as the civic body officials were "never bothered" to take any precautionary measures despite the dilapidated condition of the buildings.
Food and Civil Supplies Minister Harun Yusuf said locals had approached the MCD several times but they never bothered to take any precautionary measures.
"The MCD is directly responsible for the tragedy. It was waiting to happen. They never bothered to check the structural safety of the old buildings. They only know how to make money," Yusuf said.
The incident came as a stark reminder to last November's building collapse in east Delhi's Laxmi Nagar which claimed over 70 lives.