The infant's father, Shivdutt, a daily wage earner, alleged that Krishna died because the hospital staff delayed administering a crucial injection to him and wasted time in demanding bribe for providing treatment.
The victim's family also alleged that the infant was given "a wrong injection" by the nurse leading to his death on the morning of August 9 in the district hospital, 130 km from state capital Lucknow.
Shivdutt said his son was down with high fever and he had admitted him in the district hospital on August 7 for treatment after paying Rs 100 to the nurse and Rs 30 to a sweeper for securing a bed in the children's ward.
He said after a doctor asked the couple to admit the child, the nurse was allegedly the first to demand extra money to arrange the medical papers.
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The infant's mother alleged that on Tuesday morning a medical assistant asked them for money to get a crucial injection for Krishna.
"I asked him to give me some time...I promised to give him whatever amount he asked for," Sumita said
The minister termed the incident as an isolated one.
"We will take action on the basis of the report. Whosoever is guilty...Be it paramedical staff, doctor or any other employee, he or she will not be spared," Yadav said.
"Chief Medical Superintendent of the district hospital O P Pandey instituted an inquiry against nurse Asha Singh by a panel of three doctors. She has been removed from the ward," he said, adding the sweeper, who took money, has been sacked.
The Chief Medical Superintendent, however, ruled out administration of wrong injection, saying it was an antibiotic injection and there was nothing wrong in it.