The decomposed body, which police suspect was at least 20-days old, was found hanging through a rope tied to a hook in the bathroom.
The deceased was identified as Bhumia Sumitra through an identity card found from his pocket. A train ticket from Haryana's Ambala to Delhi has also recovered from him.
"The bungalow was allotted to an MP from Jammu and Kashmir but he had vacated it four months ago. The incident came to light around 11 am when a security guard noticed some foul smell emanating from inside the house. When he checked, he found a decomposed body in the bathroom," said a senior police official.
"A preliminary investigation suggests that he was murdered somewhere else and later his body was placed there to misguide the police," he added.
The police, however, have not ruled out the possibility of suicide. An investigation has been initiated in the case.