The victim identified as Nargis died yesterday while she was undergoing an operation for sterilisation, they said.
But, the family of the victim has alleged that she died because her intestine was cut during the operation.
Nargis had come to the hospital with her husband Abid on Saturday and her death yesterday triggered protests from locals who demanded strict action against the accused.
Chief Medical Officer (CMO) Manjit Kaur told reporters here today that an inquiry has been ordered into the incident and assured that strict action would be taken against those responsible for the woman's death.
The victim's family has registered a case against an accused doctor, under section 304 (punishment for culpable homicide not amounting to murder) of the IPC, police said.