The landslide took place at a construction site near Khodiyar temple in Nikol area of city in the evening, an Ahmedabad Fire and Emergency Service (AFES) official said.
"At around 6 pm, the AFES control room recieved a call to rescue labourers buried alive while working at a site near Nikol crossroads. The caving in took place when labourers were digging the foundation for a commercial complex," Additional Chief Fire Officer Rajesh Bhatt said.
However, two of them died during treatment, while another labourer is still under treatment, Bhatt said.
"These workers were digging space for a basement as well as underground parking for the commercial complex. After they reached 40 feet below, they got buried after the ground caved in," Bhatt said.
The deceased were identified as Sunil Rai (26) and Mohammad Hussain Shaikh (22), he said.
After learning about the incident, the Nikol police lodged an accidental death complaint and began further investigations, he said.
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