A body has been recovered from the water and three people have been rescued, a senior police officer said.
"Seven people are feared drowned. The boat capsized between 6 pm and 6:30 pm on Sunday. Two boatmen and a college student have been rescued, and a body has been fished out," Nagpur (Rural) Superintendent of Police Shailesh Balkawade said.
A person who saw the boat sinking had alerted the police control room, following which a rescue operation was launched. Mr Balkawade said it is not known yet what caused the boat to capsize.