"He died around 9 a.m. He died following lung and kidney failure after he suffered a hip fracture," his physician Koulsoum Hossein told IANS.
"It is a great shock and loss to his family, admirers and the entire film fraternity," said a family member at the actor's Santacruz residence.
According to a hospital official, Hangal was on life-support systems for the past few days but did not respond to treatment.
Hangal was admitted to the Asha Parekh hospital in Santa Cruz in suburban Mumbai on August 16 as he had suffered a fracture on his thigh bone and had been admitted to the hospital in a critical condition.
He was put on life support and was too weak to be operated on. "He is on life support system. One of his lungs is not functioning. He is also having respiratory problems," Dr Vinod Khanna, Orthopaedic surgeon at Asha Parekh hospital told PTI.
Hangal had participated in the country's freedom struggle before he joined the Hindi film industry. He was active in filmdom since 1967 and played on-screen father, grandfather, great-grandfather and uncle to many top notch Bollywood actors. He has acted in over 200 films which included 'Sholay', 'Bawarchi', 'Aaina' and 'Namak Haram'. Recently, he was seen in a TV show called 'Madhubala'.
The Hangals were in a dire state before the film industry chipped in with funds after news of the veteran actor's failing health broke out last year. Soon after, industry insiders took to social media to garner funds and support for the ailing actor.