The Peugeot's driver is in hospital after suffering serious chest injuries, while the other car's driver suffered only minor injuries.
Victoria Police, in a media statement, said "emergency services responded to a collision in Pine Lodge near Shepparton that has left four people dead."
Police said that the driver of the ute was not seriously injured and stopped to assist at the scene.
"There were five people in the vehicle (Peugeot) that ended up in a nearby paddock. The driver of the vehicle has been airlifted in a serious condition," the police added.
Police confirmed that three of the four men killed in the crash were not wearing seatbelts and were thrown from their car.
"Tragically, the three men in the rear seat of Peugeot car who were ejected from the vehicle, have died. The front seat passenger who wasn't ejected but was trapped in the car, also died at the scene," Acting Assistant Commissioner for Road Policing Justin Goldsmith told SBS Hindi.
"The driver of the Peugeot car has undergone a surgery at the Royal Melbourne hospital and will be released in coming days," he said, while confirming that all four of the people who died were of Indian background.
The Major Collision Investigation team were at the scene to probe the incident and Mr Goldsmith said police will be speaking to both drivers once they are medically cleared.
Highlighting the importance of following traffic rules, Mr Goldsmith said, "If you are new to Australia, make sure you make yourself aware of the traffic rules."
"Wearing a seatbelt is mandatory in Victoria and it is like second nature to Victorians who are born and brought up here. Even if you are here for shorter period of time, you should make yourself aware of traffic rules," he said.
Traffic rules in Victoria are strictly enforced, and the penalty for not wearing a seatbelt is almost $370.
Mr Goldsmith also urged drivers to be more vigilant on the road and to drive responsibly.
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