The other five were injured, police said. The driver has been arrested.
In June last year, traffic police launched a special drive after reports that several fatal accidents were caused by drivers who were drunk.
In the first fortnight of this year, traffic police have registered 738 cases of drink driving.
Negligent driving
Police said the accident took place on Monday night near the city's new commercial hub, the Bandra Kurla complex.
The driver has been charged with "causing death by negligence, and drunken and negligent driving" and remanded in police custody till 25 January.
The victims were daily wage-labourers who were sleeping on the pavement.
India's financial capital has 1.53 million vehicles, a figure that is growing by several hundred every day.
The city is also the country's largest consumer of alcoholic drinks, thanks largely to its thriving nightlife.
Fatal road accidents have been on the rise with more than 650 people dying on its roads last year.
In June, police launched a special drive after reports that several of the fatal accidents were caused by drivers who were drunk.
By the end of 2007, they had registered a staggering 12,000 cases against people for driving under the influence of alcohol.
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