The Delhi government on Friday cancelled the licence of Max Hospital, Shalimar Bagh, here with immediate effect, after the hospital erroneously declared a newborn dead.
The baby later died in a city nursing home.
Making the announcement, Delhi Health Minister Satyendar Jain said the hospital can continue the treatment of patients who were currently admitted but cannot admit new patients.
Patients in the hospital can shift to a different hospital if they wish, Jain added.
The Minister said that a final report on an inquiry ordered by the government was submitted to them on Friday and the decision was taken after that.
Jain said last month they had issued notice to Max Hospital Shalimar Bagh for problems in the treatment of patients under EWS (Economically Weaker Sections) category.
Also, the hospital had continued to use extra beds allotted to them for a particular time even after the deadline ended, the Minister said.
The baby boy was declared dead by Max Hospital on November 30 and handed over to the parents in a plastic bag, along with its still-born sister. However, the baby started moving while being taken for burial. The baby was then admitted in a clinic in Pitampura, but died on Wednesday.