The 22-year-old woman in her ninth month of pregnancy was turned away by the hospital as the doctors said they needed Rs 12,000 or five units of blood before they could help her with the delivery as she was anemic.
The woman accompanied by her mother-in-law reportedly pleaded for several hours before they finally left the hospital.
When they were waiting for an auto outside the hospital, a stranger saw the condition of the woman and offered to drive her to another hospital.
The woman gave birth to a baby boy in the car.
When contacted on the incident, spokesperson for the hospital said, "Right now I am not aware of the incident. I am investigating the incident and the person responsible will be punished."
Local officials have ordered an inquiry into the incident.