Home Minister R Asoka directed the Director General of Police Lalrokhuma Pachau to hand over the case to the CID for further probe, official sources said.
This is being done to dispel the notion that the state government is trying to hush up the case.
An order to this effect has already issued.
On May 17, the Bangalore Rural police probing the death of Loitam ruled it out to be case of murder.
"The doctors' opinion based on the histopathological and forensic reports, which was received by us late last night, shows that it is not a case of murder, or culpable homicide", Superintendent of Police Bangalore Rural District, D Prakash had told PTI.
Nineteen-year-old Richard, a second semester student of Acharya NRV School of Architecture, was found dead on his hostel bed on the afternoon of April 18.
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While police initially termed it as a "death under mysterious circumstances", the parents alleged it to be a case of murder.
The death sparked off nationwide protests with students demanding justice for Richard.