The deceased has been identified as Bimala Shahi (50), Spokesperson Metropolitan Police Range Hanumandhoka DSP Dhiraj Pratap Singh said.
Shahi died while undergoing treatment at Norvic Hospital.
Dharma Shahi, 35, Ambika Khadki, 27, Ritesh Shrestha, 17, Sirish Shahi were critically injured in the incident.