The actor, bedridden for the past 10 months, was rushed to the hospital after he complained of breathlessness early in the morning.
His last rites will take place this evening.
Sitaram, who made his Bollywood debut in 1994 with 'Bandit Queen,' was best known for his work in films like 'Peepli Live', 'Pan Singh Tomar', 'The Legend of Bhagat Singh' and 'Slumdog Millionaire'.
Sitaram Panchal, who was bed ridden for almost a year, sometime back took to his Facebook account, asking for monetary help in order to afford proper treatment for kidney and lung cancer.