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The driver of the luxury car has been arrested, Deputy Commissioner of Police (southwest) Manoj C said.
The incident took place in Vasant Kunj area, police said.
According to preliminary inquiry, a tyre of the car got burst following which the driver could not control the vehicle and hit the cyclist, the DCP said.
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The injured was rushed to a hospital by the BMW car driver but doctors declared him brought dead, police said.
The deceased was identified as Shubendu Chatterjee, a resident of Gurugram Sector 49, they said.
A case under sections 279 (rash driving or riding on a public way) and 304A (causing death by negligence) of the Indian Penal Code was registered and the offending vehicle has been seized, police said.
The owner of the car has been identified as Sunil (40), a resident of Punjabi Bagh, who is a businessman.
He said he bought the used car and the sticker of Finance Committee, Delhi Cantonment Board, was affixed on the vehicle since then, police said, adding that necessary legal sections will be taken for it after document verification.
He denied his presence during the accident and the facts are being verifying, they said.
Police have identified the driver as Somvir.
Meanwhile, a person on Twitter claiming to be the friend of victim Chatterjee wrote, “Today our friend was cycling in Delhi and got crushed by a high-end car. We want police to find out the culprit and investigate through CCTV cameras in Delhi.” He also posted a picture in which a sticker can be seen “Chairman Finance Committee, Delhi Cantonment Board” written on it.
Himanshu Khanna (39), the friend of Chatterjee, said that the deceased was a dedicated cyclist.
“I got information around 7.30 am from a cyclist, who was passing through the area, regarding an accident near Mahipalpur. He said that a cyclist met with an accident and he cannot identify the person. I asked him to give me the picture of cycle.
“I am associated with several cycling groups and later got to know that the cycle belonged to Chatterjee. I immediately rushed to the spot where police told me that the driver who had hit Chatterjee has taken him to Safdarjung hospital. I rushed to the hospital where he was declared brought dead,” Khanna said.
Chatterjee had a garment factory in Delhi and used to live in Gurugram. He was riding cycle for the last 10 years, Khanna said, adding that he is survived by his wife and a 20-year-old daughter.
“I came in contact with him three years ago through cycling. He had recently completed more than 70,000 kilometres riding cycle which is a big thing,” said Khanna, who is also a resident of Gurugram.
“Our group goes on a cycle trip of around 200 to 250 kilometres on weekends. We prefer Golf Course Road, Sohna Elevated Road and Gurgaon-Faridabad Road,” he said.