The baby was found alive just moments before being buried. The family then rushed the newborn to a nursing home in Pitampura.
Shalimar Bagh's Max Super Speciality Hospital - has admitted to the incident. The family was later informed by the hospital that the twins were stillborn and handed over to the family, they said.
Police have registered a case in the matter under Section 308 of the IPC which governs cases related to attempt to commit culpable homicide and can attract imprisonment of up to seven years.
"It is a very shocking incident, and shows height of negligence".
According to BBC, the doctors at Max Hospital, a privately run hospital, pronounced the baby dead hours after his twin who was still born. She was admitted there on 28 November. "The doctors had told the family that she was serious and the chances of survival of the twins were slim, as she was six months pregnant", the statement added.
Doctors of the hospital had allegedly declared declared a baby dead, along with his stillborn twin, and handed the bodies in a polythene bag to their parents, who later realised that one of them was alive while on way their to a crematorium to perform the last rites.
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The babies were born prematurely at twenty two weeks, on Thursday morning. "We are shaken and concerned at this rare incident", the hospital added. We have initiated a detailed inquiry, pending which, the doctor concerned has been asked to proceed on a leave immediately. It said the hospital was in constant touch with the parents and providing all the support needed.
Delhi government and Delhi police have both launched inquiries.
Delhi Chief Minister Arvind Kejriwal tweeted, "Enquiry ordered".
Soon after the incident came to light, Union Health Minister Jagat Prakash Nadda asked the Delhi government to take necessary action over the Max hospital's negligence. Dr Girish Tyagi, Registrar of the Delhi Medical Council, said that it would issue a notice to the hospital and a committee will be constituted to look into the matter.
"The allegation is serious in nature and demands a serious inquiry". He called it a case of "shocking criminal negligence" and an "unacceptable act".
Delhi police has sent the documents pertaining to the case to the Medical Council of India and the Delhi Medical Council for their opinion.