The body of Mohanty will be cremated with state honours.
The actor was rushed to Care Hospitals in Bhubaneswar after his condition became critical on Monday evening. He died while undergoing treatment, said sources.
The actor was brought to Odisha from Hyderabad in a special ambulance on June 14. Mohanty was admitted to a private hospital in Hyderabad after he suffered a cardiac arrest.
An alumnus of National School of Drama, the actor started his career in the Odia film industry in 1977. Mohanty acted in more than 150 films, said sources.
He was honoured with the Jayadev Award in 2014. He was also honoured with the National Award for his contribution to art and literature.
Many film personalities and political leaders expressed their condolences over the death of Mohanty.
Chief Minister Naveen Patnaik described Mohanty as a legendary personality who enriched the Odia film industry through his versatile talents.
"He had a long, illustrious career in Odia films. He occupies a very special place in the hearts of millions and millions of fans across the state and outside. His death marks the end of an era in Odia film industry and has created a deep void in the industry," said the Chief Minister.
"His contribution to Odia films will leave an unforgettable imprint for all the times to come," he added.
The Chief Minister conveyed his deep sympathies to the bereaved family.He also announced that the body of the veteran actor will be cremated with State Honours.
Odisha Governor Ganeshi Lal condoled the demise of Mohanty and conveyed his heartfelt sympathy to the bereaved family members.
"He will be remembered forever for his peerless contribution to the cinema, drama and theatre world," the Governor said.
Union Ministers Dharmendra Pradhan and Pratap Sarangi also expressed their condolences.