Police have registered a case in the matter under Section 308 of the IPC which governs cases related to attempt to commit culpable homicide and can attract imprisonment of up to seven years.
The Delhi government ordered an inquiry into the "criminal negligence" with Chief Minister Arvind Kejriwal promising "strict action".
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"We tore the packet, there were 2-3 clothes and polythene bags. The kid was still breathing. We rushed the baby to a nearby nursing home in Pitampura," the father told reporters.
The mother of the twins, born yesterday morning, was brought to the hospital from a nursing home in Paschim Vihar, police said.
"An inquiry regarding the said incident is to be initiated and a preliminary report is to be submitted within 72 hours and a final report within a week," an order, signed by city health minister Satyendar Jain, said.
Reacting to the incident, Health Minister J P Nadda said he had directed the Delhi government to look into the matter and take necessary action.
"Yesterday, we received a call at Shalimar Bagh Police Station. The callers said one Varsha, wife of Ashish, was referred to the Max Hospital from a nursing home in Paschim Vihar on account of the possibility of premature delivery," Nadda said.
"She was admitted there on November 28. The doctors had told the family that she was serious and the chances of survival of the twins were slim, as she was six months pregnant," police said in a statement.
Varsha had given birth to a boy and a girl. The family was later informed that the twins were stillborn and handed over to the family, police said.
The Max Hospital in a statement today said, "It has been brought to our attention that a premature (22 weeks) newborn baby who is reported to be on life support at a nursing home was unfortunately handed over without any sign of life by Max Hospital Shalimar Bagh."
"This baby was one of the twins delivered on November 30 morning. The other baby was stillborn. We are shaken and concerned at this rare incident," it said.
The statement said a detailed enquiry was initiated, pending which, the doctor concerned was asked to proceed on leave immediately and they were in constant touch with the parents and are providing all the needed support.
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