The incident took place in a forest area near Sheetalpur village under the Kotwali Nagar police station area, they said.
Police reached the spot after receiving information, took the body into custody and sent it for post-mortem examination.
Members of the victim's maternal family alleged that Atul was killed over a land dispute and that his body was hanged later from a tree to make the death appear to be a case of suicide.
They accused Atul's father Mahipal, stepmother Mithlesh, and stepbrothers of involvement in the alleged crime.
According the family, Atul had been called to the village two days earlier on the pretext of executing a land sale deed.
Inspector (Crime) Ajab Singh said an investigation is underway and the exact cause of death would be known only after the post-mortem report was received.
The police are examining all possible angles in the case, he said.
