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The bus was ferrying 54 warkaris, devotees of Lord Vitthal, on their way to Pandharpur in Solapur district for Ashadhi Ekadashi celebrations from Dombivli near Mumbai.
Notably, tractors are not allowed on the expressway.
The accident took place around midnight near Panvel in Navi Mumbai, deputy commissioner of police Vivek Pansare said.
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After hitting the tractor, the bus broke through the barricade of the expressway and fell into a 20-feet deep gorge, an official said.
The deceased bus passengers were identified as Hausabai Hari Patil (65), Ramdas Narayan Mukadam (71) and Gurunath Bapu Patil (65).
The injured pilgrims were rushed to a private hospital. The condition of seven of them was serious, he said.
Ashadhi Ekadashi will be celebrated on Wednesday.
Lakhs of warkaris from across Maharashtra and beyond undertake the pilgrimage to Pandharpur every year.
Maharashtra Chief Minister Eknath Shinde said the families of the deceased will be paid financial assistance of Rs 5 lakh each, and he had instructed the doctors and officials to ensure the best treatment for the injured for which the government will bear all expenses.
He was talking to the media after meeting the accident victims at a hospital in Navi Mumbai.
Police were probing the causes of the accident and those responsible will face action, the CM said.
“I met each and every injured, who told me that they were alive due to the blessings of Lord Pandurang,” Shinde said.