Dharia is survived by his wife, two sons and a daughter.
He was admitted to Poona Hospital on Saturday and underwent dialysis. However, his condition deteriorated and he breathed his last at 7.55 AM, doctors attending on him said.
He would be accorded a state funeral later this evening.
A socialist at heart, Dharia was minister of state for planning, housing and urban development in the Indira Gandhi government in 1971-75.
Dharia, who was twice elected to the Lok Sabha from Pune in 1971 and 1977, was commerce minister under Desai.
Together with former Prime Minister Chandra Shekhar, and ex-Vice President Krishan Kant, Dharia was among the young turks in the Congress party in the 1960s.
He was deputy chairman of the planning commission when Chandra Shekhar became Prime Minister in 1991.
He later led various trade unions of Postmen, state transport, banks, and other employees and was the founder president of the National Labour Centre of India.
A recipient of Padma Vibhushan, the highest Padma award, in 2005, Dharia retired from active politics in 1982 and formed "Vanrai", an organisation dedicated to the cause of conservation and social forestry.
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