The incident, which occurred on Wednesday, caused an outrage and the district administration subsequently suspended a nurse, Seema Singh, and shunted out the head of the gynaecology department, Dr Rama Ghosh, of the Bilaspur district hospital.
Officials said the woman, Muskan Khan, a widow and a resident of Sirigitti in Bilaspur city, first went to a primary health centre, accompanied by her neighbours. From the health centre, she was sent to the district hospital as she did not have a sonography report.
However, the hospital allegedly turned her away on the ground that there was no vacant bed.
While returning, she went into labour and delivered the baby under a tree, officials said.
The woman and the baby spent the entire night under the tree, they added.
Officials said the woman's husband, Shahid Mohammed, passed away two months ago.
Bilaspur Divisional Commissioner Niharika Barik took a serious view of the incident and formed a committee headed by the additional collector to probe the matter, they added.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)