The hospital handed the twins to the family in a polythene sac, however, the boy was found alive while the parents were on the way to crematorium for performing last rites.
A newborn baby, who was mistakenly declared dead hours after birth a week ago by doctors at a Delhi hospital, died on Wednesday, family members said.
Of the twins born prematurely on November 30, one was stillborn and another was kept on life-support.
The infant was declared dead by Max Hospital of Shalimar Bagh.
"We are shaken and concerned at this rare incident", said a spokesperson for the private Max Hospital.
The Delhi government on Friday cancelled the licence of Max Hospital in Shalimar Bagh where a newborn was declared dead but later found alive last week. However, Dr Sanjeev Gupta of Aggarwal Hospital said that baby was of just 22 weeks and it was hard for him to survive from the start as he needed too much support.
The baby and mother were admitted to another hospital, where his condition was said to be stable. The parents on their way to the funeral of their baby noticed that the bag in which the baby was placed by the hospital was moving. Max Hospital also sent its condolences to the parents after hearing that the baby who survived also died.
According to the family, senior police officers met them on Thursday and informed them that investigation into the case has been transferred to the Crime Branch.
"The preliminary report has found them guilty in certain aspects and the final report is expected in next two days".
Max Healthcare fired the two doctors considered responsible earlier this week, but emphasized that the decision to let the doctors go should not be interpreted as an admission of guilt.
"We want the Delhi government to take strict action against the hospital authorities for their negligence", the boy's grandfather previously told CNN.
His uncle Deepak said they chose to collect his body as per the wishes of the elders in the family.
The Indian Medical Association (IMA) also held a meeting regarding the negligence of doctors at the hospital.