The shocking incident took place on on Jan 29 and victim succumbed to death on Jan 30 at his home in Green Park area.
The deceased has been identified as Nido Tanian, the son of an Arunachal Pradesh's Congress MLA and Parliamentary Secretary in Health and Family Welfare Department, Nido Pavitra.
Some locals intervened and the quarrel was stopped after which Tanian came back home.
However, his condition suddenly deteriorated yesterday after which he died under suspicious circumstances, his relatives claimed.
"His postmortem has been carried out in AIIMS. The cause of death would be clear only after the autopsy report. There was some altercation he had on Wednesday, we are investigating the case," a senior police official said.
A youth claiming to be his cousin told a TV channel, "This is surely about racism. Everybody in Delhi discriminates against us based on our looks. We are living in India, but we don't know whether we are actually living in India or not.. every time we are discriminated against. "His family has been informed," he said.
Meanwhile, victim's cousins have alleged that he was targeted because of his hairstyle. He was also mocked upon and called 'Chinese'.
The incident took place on on Jan 29 and victim succumbed to death on Jan 30.
A shopkeeper has been detained in connection with the attack.
The students' group has claimed that police officials picked up the victim and dropped him at the same spot. TV reports also say that victim might have been beaten with rods and sticks.
After the incident, the activists have questioned Delhi Chief Minister Arvind Kejriwal.
An activist BinaLaxmi Nepram has asked Kejriwal, "Is this what you promised to give us?"
However, the AAP government has put the onus on Delhi Police over the death of the student.
North East MPs to meet PM
Members of the Parliament from the North East have held a meeting in connection with the student's death matter and will meet PM Dr Manmohan Singh.