The doctor on the case had declared the twins, who had been born prematurely at 22 weeks, dead, but in fact one of the babies was alive.
An initial report by a three-member panel formed by Delhi Government has been submitted to the health minister Satyendar Jain.
Local police said they were collecting hospital records for the mum and newborn babies, reports Asian News International. It also found that the body was handed over without any written instructions. They opened the bag to find the live child. Jain had said that, if required, the hospital's licence will be cancelled.
In his complaint to police, baby's father Ashish Kumar, had said the boy had contracted an infection after being wrapped in a plastic bag by the Max Hospital.
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The hospital group had ordered an inquiry into the case on December 1.
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Just before their last rites, the family discovered that the baby boy was breathing, the police said.
"We tore the packet, there were 2-3 clothes and polythene bags".
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The baby was taken straight back to hospital and placed on life support.
"This baby was one of the twins delivered on 30 November morning".
Delhi Chief Minister Arvind Kejriwal has said that the government would come up with a legal framework to check the "loot" and "criminal negligence" by private hospitals in the wake of the Max incident.
The statement said a detailed enquiry was initiated, pending which, the concerned doctor was asked to proceed on leave immediately and they were in constant touch with the parents and are providing all the needed support. As per the report, no ECG tracings have been done to trace whether the child was alive or not.
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