Varsha, who was 56 years old, allegedly shot herself with her licensed revolver in her Pedder Road residence.
Police say she died on the spot. No suicide note was found but Varsha Bhosle was believed to be suffering from depression and had been hospitalized a few weeks ago after a suspected overdose of sleeping pills.
Varsha Bhosle's body has been sent to J J Hospital for a post-mortem and a case of accidental death has been registered by the Mumbai police.
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