The body of the newborn baby was found inside a bio-waste truck at Mata Chanan Devi hospital yesterday.
The parents of the deceased baby have alleged that the lapse had occurred despite hospital authorities having taken money from them to keep the body in the mortuary.
The infant was born on Sunday morning at Khanna Nursing home.
Her parents had taken her to Mata Chanan Devi hospital in the evening when her condition deteriorated.
The infant had died of complications on Monday at 2 A.M.
The body was to be kept at the hospital mortuary but was instead later discovered in the bio-waste truck.