The incident took place at Tilak Marg at around 1:20 am when the victim Mohammad Rafiq, a resident of Mandawali, was returning home.
The driver of the BMW was Ayush Arora, an MBBS student who is doing internship with Maulana Azad Medical College.
Arora was on way back from a get together along with two other friends.
The impact of the head-on collission was such that Rafiq fell out of the car through the windshield.
Rafiq was taken to Lok Nayak Jai Prakash hospital where he was declared brought dead.
Rafiq's car caught fire and the flames were doused later.
Arora was arrested from the spot. Police said he was not under the influence of alcohol when the incident took place.
The car is registered in the name of a doctor at Gangaram hospital.