According to IIT Bombay, Wakode was allegedly found using his mobile phone during an examination and had uploaded the question paper to ChatGPT to seek answers.
The institute said Wakode was subsequently counselled by the instructor and the Head of the Department.
IIT Bombay maintained that he was assured the incident would not adversely affect his academic career and that no disciplinary action had been initiated against him at that stage.
Wakode later returned to his hostel room, where he was found dead.
Family alleges caste discrimination
Wakode's parents have alleged that their son faced harassment at IIT Bombay and had previously spoken to them about caste discrimination.
His father, Ravindra Wakode, has accused Professor Suryanarayana Doolla, who was the invigilator during the examination, of discriminating against his son and has demanded his arrest.
CCTV footage shows exam hall incident
CCTV footage from the IIT Bombay examination hall has emerged in the case involving the death of 22-year-old Wakode, showing the moments when an invigilator stopped him during the examination last Friday.
Wakode, a second-year student, is seen sitting in the front row wearing a black T-shirt when invigilator Prof Suryanarayana Doolla approaches him and speaks to him.
The student briefly gets up from his seat before sitting down again and handing his mobile phone to the invigilator, the footage shows.
Professor sent on leave
Doolla, who is at the centre of the controversy surrounding Wakode's alleged suicide, has been sent on leave by IIT Bombay, NDTV reported.
According to the report, Doolla was removed as Dean of Administrative Affairs on Monday following protests by students over the case.
A case has been registered against Doolla on charges including alleged abetment and caste discrimination.