The girl was born at the Indore District Hospital on June 3 and she died yesterday.
A state health department official said the Madhya Pradesh government today suspended four staffers of the hospital and ordered a magisterial inquiry into the episode after taking serious cognisance of the incident.
"A local resident Sangita Baghel had given birth to a baby girl in the district hospital on June 3. Two days later (on June 5), the new-born was administered a vaccine, following which she turned unwell with a high fever," MP Health Department Joint Director, Sharad Pandit said.
The infant's kin also alleged that the body was kept in the hospital's morgue from morning till evening yesterday, where ants bit it. In the evening, the body was sent to another government hospital for post-mortem.
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Pandit said that in view of the allegations, a three-member committee was formed to probe the matter, which confirmed that there was negligence in the treatment of the new-born baby.
Following the findings of the committee, the state government was recommended to suspend four staffers of the hospital.
Pandit said a departmental inquiry has been ordered in the case.
Meanwhile, Indore District Collector P Narhari has ordered a magisterial inquiry that will be conducted by a Sub Divisional Magistrate (SDM) into the incident in a fortnight.
The incident comes in the wake of death of two children who were administered an anaesthetic agent instead of oxygen at the Maharaja Yeshwantrao Hospital here.