The Max Healthcare Hospital in New Delhi is now under investigation and police are collecting hospital and treatment records for the mother and the two babies.
"When we opened the bag, we found the boy breathing", his grandfather Praveen Malik told CNN.
While en route, the family said they noticed "some movements" in one of the bags, according to CNN. "I was shocked. I couldn't believe my eyes", Malik said in a previous CNN report.
"We could not say anything more but the doctor should be put behind bars and the license of the hospital must be cancelled so that this incident is not repeated with any family in future", said Vikas, maternal uncle of the deceased infant.
The boy was then taken to hospital in a critical condition. "They betrayed us", Mr Malik said. "He was bleeding from multiple organs and he could not survive", said Dr Sandeep Gupta of Agarwal Hospital.
"We did our best to save the child but we had to give up at about 12 in the afternoon".
"We wish to clarify that this action should not presuppose finding of any lapse by the expert group and should not be construed in any way to be anything other than an expression of our continued commitment to providing quality healthcare".
This case of medical negligence has received significant attention from local politicians.
Delhi Chief Minister Arvind Kejriwal also tweeted saying authorities would take the "strongest action" if someone is found at fault.
Delhi Health Minister Satyendra Jain on Wednesday assured of action against the hospital and doctors after receiving the final report of a panel constituted by the Health Department to probe the alleged medical negligence by Max Hospital. "Once we get that we will take strictest possible action according to law", Mr Jain told reporters in Delhi. Senior police sources said that if the allegations were found to be true, the hospital might be charged for extortion.
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