Notorious gangster and an associate of Lawrence Bishnoi gang, Prince Tewatia was allegedly killed by his rival gang members in Tihar jail on Friday.
Sources said that Tewatia was lodged in central jail number-3 of Tihar.
"The incident occurred around 5 p.m. and an investigation has been initiated into the matter," said an official.
In December last year, Tewatia was arrested by the Crime Branch for his involvement in a sensational case of carjacking in the national capital.
The 30-year-old Prince Tewatia was previously also involved in 16 cases, including murder and attempt to murder.
Tewatia had come out from jail on parole for a month and had to surrender on October 27 but he did not.
Instead, he along with his associates planned to take revenge from rival gangsters at whose direction one Kunal had attacked him with a blade and caused injuries to his face while he was in jail, the police said.
Tewatia had then allegedly threatened an SUV owner with a loaded pistol and robbed his Fortuner car at gunpoint.
He was first arrested by police in 2010 for murder. While appearing for his case in Court, he produced a fake birth certificate so that he could be treated as a juvenile but was caught and a forgery case was registered against him on the court's orders.