The chopper crashed in an open ground in Aarey Colony, a green belt in suburban Goregaon, a Fire Brigade official said.
Four persons, all occupants of the chopper, suffered burns and were rushed to a hospital where one of them succumbed to injuries, said DCP (Zone 12) Kirankumar Chavan.
Three fire engines were rushed to the spot and the blaze has been contained, the Fire Brigade official added.
Local residents alerted police and Fire Brigade after they spotted smoke billowing from the crash site.
"We saw smoke in our area at around 11:45 AM and realised something untoward has happened," an eyewitness said.
Further details were awaited.