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According to police, there was an annual fair at the Kurumagada island in the Arabian sea, where the Narsimha Swamy shrine (dedicated to Lord Vishnu’s incarnation Narsimha) is located.
Police had earlier said nearly 1,000 people had gone there to take part in the fair and the boat capsized while returning to the Karwar beach.
TheNavy said in a tweet that there were 26 people in the boat.
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Of the 26 persons reported to be on the boat, 17 people were rescued by other civil boats operating in the area, the Navy said.
Eight bodies have been recovered by the Navy and Coast Guard while a search is on for the one person still missing.
A Dornier aircraft has been launched from Goa for search and rescue, the Navy added.