The injured persons are undergoing treatment at Gudiyatham Government Hospital and Government Vellore Medical College Hospital in Adukkamparai.
According to sources, at least 26 families are yet to receive permanent double bedroom houses, as a result of which they had been staying in makeshift houses in the colony.
According to the sources, all the dead belonged to Khangavi family of Badalankalgi.
It was not immediately clear what led to the collapse of the building.
The injured were taken to a nearby hospital where their condition was stable.
Bundi SP Shivraj Meena said that an old wall collapsed on the house in which two brothers, Mahendra Kaivat and Mahaveer Kaivat, lived with their families.
PM Narendra Modi expressed anguish at the loss of lives caused by wall collapse incidents in Mumbai due to heavy rains.
Seventeen people died as a compound wall came crashing down on some houses located on a hillock after a landslide.
When the woman's demand for more compensation was not fulfilled, she tried to kill herself by consuming poison on Tuesday (April 6).