The deceased has been identified as Pramod Kumar, a teacher with a private school in Model Town area. The incident took place at around 11pm on Monday, said police.
Ajeet, a resident of Mohan Garden in Uttam Nagar area, was behind the wheels of the car which was attached with the Defence Ministry. He has All India Tourist Permit for the car.
Police said the driver lost control of the vehicle and rammed it into several shops, a hand-pulled cart and crushed Kumar.
"Kumar had come to Khayala to meet his friend. He was waiting for his friend near a vegetable market when he was hit by the speeding car. A passerby informed the police about the incident", said a police officer.
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The impact of the accident was such that the car overturned three times before coming to a halt.
Ajeet's two friends, identified as Vinay and Aman, were also sitting in the car. They too have suffered minor injuries.
Ajit managed to flee from the scene and efforts are on to nab him, said the officer.