INTERNATIONAL NEWS - The doctors at the privately run Max Hospital had pronounced the baby dead hours after his twin who was stillborn on 30 November.
The parents found that the baby was alive while they were on their way to his funeral.
The incident sparked outrage and a debate over the quality of private healthcare which is often costly.
The privately run Max Hospital said in a statement that "this strict action has been taken on the basis of our initial discussions with experts".
"While the inquiry by the expert group which includes external experts from Indian Medical Association is still in process, we have decided to terminate the services of the two treating doctors," the hospital added.