"Yes, Sandeep passed away at the Medanta Hospital. He was suffering from jaundice. We brought him here on Dec 10," Akshay Acharya, Sandeep's cousin, told IANS.
"Before that he was admitted to a hospital in Bikaner (Rajasthan). He was there for three days after which we brought him to Delhi," he added.
Soon after winning the second season of singing reality show "Indian Idol" in 2006, Sandeep Acharya released his first album "Mere Saath Saara Jahaan".
"He was supposed to release his new album 'O Sanam Tere Bina' mid-December," said Akshay.
Choreographer-filmmaker Farah Khan, who judged the reality show's second season with music composer Anu Malik and Sonu Nigam, tweeted: "It's too sad to hear of Sandeep Acharya, winner of 'Indian Idol 2' and my favourite, passing away. Such a gentle boy he was. Not his time to go."
Singers in the industry expressed deep shock over the death of the young singer
Sonu also felt sad after reading about Sandeep's demise. "Jaundice? Gosh...very sad. The boy was just 29...This year, oh god, is only about deaths I feel. God give his parents some strength," read Sonu's tweet.
Anchor-actress Mini Mathur, who hosted "Indian Idol 2", was taken aback with the news. She tweeted: "What a sad, premature goodbye to a talented, ambitious, happy boy. RIP Sandeep Acharya."
Even Sony Entertainment Television expressed their sadness over Sandeep's passing.
"A big loss for all of us with the shocking demise of 'Indian Idol 2' winner Sandeep Acharya. May his soul rest in peace and may God give strength to his family in this extremely difficult time," the channel posted on their Facebook page.
Singer Shreya Ghoshal wished the news about his demise to be untrue.
"Just heard about 'Indian Idol' Sandeep Acharya...Shocked. Too young, and a wonderful guy...I still hope this news is untrue," Shreya tweeted.
His body is now being taken to his hometown Bikaner where the last rites will be performed.