Taking cognisance of the allegation of negligence against the health staff, Chief Minister Parkash Singh Badal ordered a high-level probe into the matter.
The victim's father Sanjeev Kumar charged the medical staff of the civil hospital with removing the vital gadgets from his daughter as he failed to pay the requisite fees.
"My wife Anita gave birth to a girl child in civil hospital on July 21. The child was diagnosed with jaundice and later shifted to emergency ward on life support system," he told reporters here.
"Nurses told me to deposit two hundred rupees as its charge. I was unable to pay the money. Later, they removed the system from my daughter resulting in her death last night," he claimed.
When contacted, Medical Superintendent Iqbal Singh said he was not aware of the incident as he was out of station.
Singh said he would look into the case and tough action would be taken against the guilty.
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Meanwhile, Punjab Health Minister Madan Mohan Mittal expressed shock over the incident and said that an inquiry will be completed within two weeks.
An official spokesman quoting Badal said, "the committee would thoroughly examine the complete record and take statements of the members of the aggrieved family and submit its report within three days to the government."