Some of their neighbours came along to help.
Sanjeev died on the spot as well as his mother, Krishna Devi Gupta, 40, and uncle, Madan Gupta, 29.
Also killed in the accident were their neighbours, Dharmanath Sinha, 50, of Motihari, and his wife, Veena, 46.
The sixth victim was identified as Sudan Shrestha from Sindupalchowk district in northern Nepal.
Dipak Gupta, 28, also from Sitamarhi, was taken to the National Institute of Neurological and Allied Sciences in Kathmandu with serious head injuries.
Kathmandu police will pay NRS 5,000 ex gratia compensation for each person killed, police said.
Dangol's family has also offered to pay compensation.
There is growing public outrage about the accident.
After violent protests Wednesday that disrupted traffic throughout the day with mobs calling for the perpetrator to be hanged, letters have started pouring in at the offices of Nepal's newspapers.
People are questioning why and how the driver and his friends did not surrender earlier.
A man suggested on the website of the Republica daily that Dangol surrendered after his affluent family had the chance to talk to lawyers and cook up a defence.
Meanwhile, the victims' families faced a bleak future with the breadwinners gone.
'I have lost everything,' said Sanjeev's father, 45-year-old Bhola Gupta.
'I am a disabled man and can't do anything on my own. My wife was running a pavement business and supporting our family. Now with both my wife and son gone, what will happen to me?'
Geeta Gupta, 26, wife of Madan Gupta, slumped in the police station, weeping softly.
'I have three young children,' she whimpered. 'The youngest is just three months old. What is going to happen to us?'
Nepal has one of the highest street accident rates with police reporting three deaths on an average day.
Rash and drunken driving, bad roads and dilapidated vehicles contribute to the mishaps.