Praveen Yadav had cleared the Pre-Medical Test in 2008-09, but was named as an accused by a Special Task Force investigating the Vyapam scam in 2012. He hung himself at his home in Maharajpur area of Morena.
Investigating officer RN Yadav said "Praveen hanged himself, we are investigating the matter."
Mr Yadav's family says he was innocent and a bright scholar who got into Pre-Medical Test on his own. They claim he was maliciously framed in the scam and was under stress after being repeatedly questioned.
"He was tortured by the Special Task Force, then the CBI questioned him. He was tense, was trying to say something from the past few day. He was a good student, cleared first year also," his relative Mukesh Yadav alleged.
Mr Yadav, the only son of his parents, leaves behind a wife, a two-year-old son and a three-year-old daughter.
In July 2015, the case was handed over to the CBI. The opposition is alleging the investigating agency is working at the behest of the ruling party in the state, the BJP.
Leader of opposition in the Madhya Pradesh assembly Ajay Singh said, "He was harassed by the Vyapam agencies... He committed suicide. The CBI is working at the behest of PM and CM."
The scam pertains to massive irregularities in admission and recruitment in the Professional Examination Board of Madhya Pradesh.