MAX hospital of Shalimar Bagh. (Photo: Barcroft Media via Getty Images)

A hospital in India laid off two doctors and promised an investigation after a baby who was pronounced dead woke up in a bag while the family drove to his funeral.

The case has sparked outrage throughout the country, the police are involved and the health minister in New Delhi has threatened to cancel the hospital's license.

Max Healthcare in New Delhi issued a statement saying that the "unfortunate incident" occurred on Thursday after a premature delivery of twins after a five-month pregnancy. The second child was born dead, the first was declared dead a short time later.

The babies were placed in plastic bags and the family drove to the crematorium when they saw movement. They opened the bag to find the child alive.

The baby was placed on life support, the hospital said.

"We are shocked and worried about this rare incident," the hospital said. "We are in constant contact with parents and we are providing all the necessary support."

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In addition to the controversy, the boy's father, identified by Delhi-TV as Ashish, said doctors told him on Wednesday that his wife, Varsha, needed an operation to bleed. Ashish said doctors demanded extra money to improve the chances of keeping the baby alive and the mother.

Delhi police said they were collecting hospital records for the mother and treatment records for newborn babies. The hospital video was also being reviewed, police said.

The hospital, with more than 300 beds, is one of 14 at Max Healthcare locations throughout India. It is known as a "super specialty hospital" on the company's website, with a wide range of medical disciplines.

The Indian Medical Association also intervened in the case, issuing a warning to hospitals that the body's metabolism is suspended in cases of severe hypothermia and may protect against oxygen deprivation for a prolonged period of time.

Dr. KK Aggarwal, president of the badociation, tried to unfreeze the suspended doctors, AP Mehta and Vishal Gupta.

"There is definitely an error," he told Asian News International. "The difference between an error and a negligence is a deliberate action, I do not think any doctor will do it voluntarily, but let the research committee find out"

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