64-year-old Munde, who made his entry into the Union Cabinet for the first time last week, was on his way to the airport when his Maruti Suzuki SX4 car was hit by a Tata Indica car at Prithviraj Road-Tughlak Road intersection in the heart of the capital.
Delhi Police said the Intelligence Bureau and the Special Cell were investigating whether there was any conspiracy angle behind the accident.
Munde was taken to AIIMS Trauma Centre at 6.30 AM by his personal assistant and driver and was declared dead at 7:20 AM.
Union Health Minister Harsh Vardhan said Munde suffered cervical fractures and oxygen to the brain and lungs may have been cut off following the injuries.
Vardhan said Munde's liver had tear at 2-3 places and there was one-and-half litres of blood in his abdomen because of the injury.
"The major thing that cost him very heavily was a fracture of the cervical spines C1 and C2. When you have fracture at C1 and C2, the blood supply at the brain gets cut off because the vertebral artery gets damaged immediately," he said.