Deputy Chief Minister Manish Sisodia termed the incident as an example of typical "colonial mindset" and said that if the allegations against the restaurant are found true its licence will be cancelled.
"If allegations are found true, Delhi government will cancel licence of the restaurant," he said.
Sisodia has also ordered the district magistrate of New Delhi to conduct an inquiry into the incident and submit a report within 24 hours.
"This is typical colonial mindset. Can't be tolerated. Have ordered DM New Delhi to inquire & report within 24 hours," he said in his tweet.
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Shiv Sagar restaurant manager did not answer phone calls and messages despite several attempts.
New Delhi district magistrate visited the restaurant today morning and questioned its staff.
"The DM asked the waiters and other staff of the restaurant about the yesterday's incident and noted it down," said a restaurant staff member.
"I will go again to the restaurant in the evening today with those children and buy them food there," she said, adding that she will fight till the children are tendered an apology by the restaurant.
She also alleged that the policemen who had come to the restaurant on her call also did not help her and instead "reprimanded" her and asked her to take the children to some other place.
Sonali's husband serves in the Indian Army.