Senior police officer Imtiyaz Hussain said that four other people were injured in the accident.
Shah said among the seven dead includes four members of Andraskar family from Delhi.
Meanwhile, the Jammu and Kashmir government has ordered a high-level inquiry into the cable auto incident.
The gondola lift at Gulmarg claims to be the world's highest, ferrying passengers to a height of 4,100 metres for panoramic views of the snow-clad Himalayas. A as per PTI, Mukhtar Ahmad, a resident of Chonti Patri Babareshi was also killed, the official said. More than 150 tourists, including children, were stranded in the Gondola after the incident, prompting the officials to call in the Army.
A tree, uprooted by strong winds, fell on the ropeway of Gulmarg Gondola, an official said.
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An official of the cable vehicle company said about 100 people, who had used the ropeway, were stranded and rescue efforts were on.
Seven people succumbed to injuries after Gondola tower collapsed due to strong winds in Gulmarg on Sunday.
The accident was condemned by former Chief Minister Omar Abdullah who questioned why the services were running in windy weather in the first place. She announced ex gratia relief of Rs. five lakh in favour of next of kin of those killed. The gondola lift is split in two stages where in the first stage the auto transfers tourists from the Gulmarg resort at 8,530 feet to Kongdoori Station in the bowl-shaped Kongdori valley and in the second stage it ferries the skiers to a height of 12,293 ft on Kongdoori Mountain.
Abdullah wondered why the cable auto operations were not suspended in high winds.
He wrote: "What awful news! That's a laid down SOP [standard operating procedure]", he posted on Twitter.