The incident took place around 10 pm on Balaram Merchant Road in the Bhuleshwar area.
According to preliminary information, the idol reportedly fell after some nuts and bolts in its supporting frame became loose.
The Mumbai Fire Brigade, Mumbai Police, traffic police, 108 ambulance service and civic ward staff were immediately deployed at the spot following the incident.
The injured victims were taken to nearby hospitals for treatment. Doctors later declared two people dead.
The deceased have been identified as Sanket Nevshe (33) and Brijesh Hemant Joshi (30).
Five others were injured in the incident. Vaibhav Ghenand (38) and Pawan Chaurasia (25) are undergoing treatment at GT Hospital.
Lavanya Ganer (5), Divya Ganer (7) and Kunal Kashid (26) have been admitted to JJ Hospital.
Officials said all five injured people are currently in stable condition.
The incident has raised concerns over the safety arrangements and structural support used for large Ganesh idols during arrival ceremonies and processions in Mumbai.
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