Mr Basha was coming to Hyderabad from Guntur when the four-wheeler in which he was travelling hit a divider in Nalgonda district, about 80 km from Hyderabad. The driver was injured, police said.
Mr Basha was the most prominent Muslim leader of TDP and played a key role in the party for nearly three decades.
He was elected to Lok Sabha from Guntur in 1991 and served as a member of Rajya Sabha.
Mr Basha is the second senior TDP leader to die in a road accident in recent months. Former union minister K. Yerran Naidu was killed in Srikakulam district in November last year.
TDP chief N. Chandrababu Naidu termed Basha's death a huge loss for the party.