Rescue workers retrieved six bodies while two children were pulled out alive from the debris and shifted to hospital.
The incident took place in M.J. Colony in Moulali, a city suburb, when an old wall fell on the adjacent huts due to incessant rains lashing the city for last three days.
The victims were members of two families of labourers who had migrated to the city from Ranga Reddy and Mahabubnagar districts. An entire family perished in the mishap.
Minister for revenue, relief and rehabilitation Raghuveera Reddy said an ex-gratia of Rs.8.5 lakh to one family and Rs.6.5 lakh to another family would be paid.
Chief Minister N. Kiran Kumar Reddy expressed grief over the deaths in the wall collapse. He directed Greater Hyderabad Municipal Corporation (GHMC) to ensure that the injured were provided best treatment.
GHMC commissioner Krishna Babu told reporters at the scene that the corporation would pay Rs.1 lakh ex-gratia each to the kin of those killed. He said a case would be booked against the builder, whose negligence led to the tragedy.
The incident took place two weeks after City Light Hotel collapsed in Secunderabad, killing 18 people.
The GHMC has come under criticism for failure to prevent another incident. After the hotel collapse, GHMC had announce that it would identify and demolish dilapidated buildings in the twin cities of Hyderabad and Secunderabad.