He was admitted to AIIMS in New Delhi on Monday night. He was 81.
He became a pracharak at the age of 16 and remained a bachelor. He was made the party's vice president also. He defeated Digvijay Singh of congress in Lok Sabha election from Rajgarh in Madhya Pradesh.
His body will be kept at the BJP office in Delhi and cremation will take place at Bhopal.
Khandelwal was a known Advani baiter. From time to time, he used to raise questions over party's decisions. The last letter he wrote was about questioning Jaswant Singh's expulsion and asking the party to take him back.