"We have ordered a magisterial inquiry into the incident," Urban Development Minister Arvinder Singh Lovely said.
The incident took place in Dallupura village near Mayur Vihar Phase-III at around 10 AM. Besides the deaths, a child was also critically injured in the incident.
Divisional Commissioner of MCD will also conduct a similar inquiry.
Lovely said government will take strong action against those found responsible for the incident.
The government has decided to provide a compensation of Rs one lakh each to the family members of the deceased and Rs 50,000 to the family of the injured.
Lovely said it was the responsibility of civic bodies to stop illegal construction and accused BJP-ruled municipal corporations of total failure in carrying out their duties.
"Government will ensure that similar incident is not repeated in future," he said.
Six children, aged below ten years, were playing in the vacant plot owned by one Vijender when the mishap took place. The children were trapped under the debris. Rescue workers rushed them to hospital where five of them were declared brought dead.
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