The incident occurred yesterday when the woman, Zubeda, was taken to a government primary health centre in Kandhla town after she complained of labour pain.
The woman's family alleged she delivered the baby in the compound of the health centre after the doctors on duty refused to admit her, demanding a bribe as the price of admission.
Later, following protests by family members, she was admitted to the health centre with her child. The family is now demanding strict action against those responsible.
Meanwhile, the superintendent of the health centre, Ramesh Chander denied the allegations that the women had been refused admission. He said an inquiry has been ordered into the incident and the victim has been referred to a district hospital.
The victim and her family had been displaced from Dungar village following Muzaffarnagar riots last year and they were later rehabilitated in Kandhla town.