Reports claimed on Saturday that at least 25 infants have died at the BC Roy Hospital in Kolkata over the past four days.
Sources said the children were suffering from malnutrition.
In their defence, hospital authorities suggested that the deaths were caused due to a surge in number of terminally-ill patients referred from other hospitals.
The government has set up a two-member panet to inquire into the deaths.
A health department official denied negligence on the part on the hospital.