Driver at the centre of horror Daylesford crash discharged from hospital

The driver at the centre of a horror crash that killed five people including two children in Victoria has been discharged from hospital.

The 66-year-old's lawyer told media yesterday, that his client was an insulin-dependent diabetic who required immediate treatment following the crash.

Detectives interviewed the driver from Mount Macedon on Monday night, after a car ploughed into patrons sitting in a beer garden at the Royal Daylesford Hotel over the weekend.

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9News can reveal the driver was returning home from a clay target shooting event about 38km away in Clunes.

Solicitor Martin Amad, who is representing the driver, said his client returned a negative alcohol breath test after the crash, and had no previous criminal history.

"It was a terrible tragedy," Amad said.

"My client has been interviewed by Victoria Police. He has not been charged with any offence. It's anticipated the investigation will take some time.

"He is deeply distressed and feels great empathy for the families and friends of the victims and wider Daylesford community."

The driver is still in hospital and receiving ongoing treatment.

Police officially suspended his licence yesterday.

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Police seized the 66-year-old's phone after the crash, and will now examine it.

Pratibha Sharma, her husband Jatin Chugh and her daughter Anvi were sitting with friends when the white BMW SUV crashed into outdoor tables about 6pm on Sunday.

Sharma and Chugh died at the scene.

Anvi, aged 9, was flown to hospital but did not survive her injuries.

They were enjoying a holiday with friends, Vivek Bhatia and his 11-year-old son Vihaan, who both died at the scene.

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Bhatia's wife Ruchi, 36, and six-year-old son Abeer were taken to hospital with serious injuries.

Abeer was in a critical condition with broken legs and internal injuries but has since stabilised.

A separate group including a 43-year-old Kyneton woman and a 38-year-old Cockatoo man were also injured and flown to the Royal Melbourne Hospital.

An 11-month-old boy was also rushed to hospital, but has since been discharged.

The baby's mother, a 34-year-old woman from Cockatoo, was not injured.

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The community rallied around the Royal Daylesford Hotel yesterday, which opened its doors for the first time since the crash for first responders.

"On behalf of all of us at the Royal Daylesford Hotel we wish to express our deepest sympathy for those who have passed away, those injured, their families and everyone affected by this terrible tragedy," the hotel said in a Facebook post.

"As community members we know how deeply we have all been impacted. All the staff at the hotel are extremely distressed and we have counselling on site to assist the team to manage the impact of the events.

"We would like to thank the police, the SES, the ambulance services and members of the Daylesford community for their support and assistance."

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A memorial service was also held at The Anglican Parish of Daylesford last night.

Police are continuing to investigate the incident.

Anyone who witnessed the incident, has CCTV, dashcam footage or any other information is urged to contact Crime Stoppers on 1800 333 000.