The newborn was declared dead just hours after his stillborn twin sister at the New Delhi hospital was also pronounced dead.
Talking to CNN the twins grandfather, Praveen Malik, explained that the doctors initially said the boy was in 'critical condition', but just hours later they officially declared him deceased.
It was when the parents were on their way to the crematorium that they noticed 'some movement' inside on the hospital bags their 'deceased' child was placed in.'
Mr Malik said, 'When we opened the bag, we found the boy breathing. I was shocked I couldn't believe my eyes.'
Subsequently, the parents rushed the newborn to hospital where they were informed the boy was in fact alive.
A statement from the hospital that released the child as 'deceased' says, '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 further added that the decision to let the two doctors who treated the parents is not to be interpreted as an 'admission of guilt.'
'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.'
The young boy is now reportedly receiving treatment at another New Delhi hospital and is in critical condition.
The family are unsure if their son will survive.