At least 22 people, including women and children, were killed as a boat carrying tourists capsized off Tanur town in Kerala's Malappuram district on Sunday evening.
The boat, according to local people, was carrying around 40-50 people.
The two-storey boat toppled at Thooval Theeram Ottupuram beach and six people were rescued from the site.
Talking to IANS, local fisherman Ummer Palakode said: "The boat was carrying people more than the capacity and this could have led to the boat toppling and people dying."
The bodies have been shifted to Malappuram district hospital.
National Disaster Response Force (NDRF) personnel are engaged in the rescue work.
Prime Minister Narendra Modi condoled the deaths and announced a compensation of Rs 2 lakh to the families of each victim.
"Pained by the loss of lives due to the boat mishap in Malappuram, Kerala. Condolences to the bereaved families. An ex-gratia of Rs 2 lakh from PMNRF (Prime Minister's National Relief Fund) would be provided to the next of kin of each deceased," the Prime Minister's office tweeted Sunday evening.
Congress leader and former Wayanad MP Rahul Gandhi wished for the speedy recovery of those injured.
"Distraught by the news of a houseboat capsizing in Malappuram, Kerala. My heartfelt condolences to all those who have lost their loved ones, and wishes for the speedy recovery of those injured." "I appeal to Congress workers to assist authorities in rescue operations," Gandhi tweeted.
Chief Minister Pinarayi Vijayan will be leaving for Tanur on Monday morning and has deputed Ministers Abdul Rahman and Mohammed Riyaz to coordinate with various departments for rescue and relief operations.
(With inputs from IANS)