Superintendent of Police Sudhir Kumar Singh said the deceased has been identified as M J Kamresh Babu (20), a resident of Madurai in Tamil Nadu.
The SP said an empty liquor bottle and two coloured powder packed in a small tin box were found from the room hired by the youth who was engaged in the trade of sticker.
It was suspected that the youth was involved in illegal narcotic trade, he said.
The body was sent for post-mortem and the youth's family has been informed.