The private neonatal hospital where seven newborns died and five were injured in a blaze was operating despite the expiry of its license.
It also did not have qualified doctors and had no clearance from the fire department, police said on Sunday.
"The licence issued to the Baby Care New Born Child Hospital by Directorate General of Health Services (DGHS), Government of Delhi, has already expired on March 31.
"Even the expired licence issued to the said hospital allowed for five beds only," Deputy Commissioner of Police (Shahdara) Surendra Choudhary said.
The officer said 12 newborns were admitted in the hospital at the time of the incident.
"During the investigations, we got to know that the doctors are not qualified/ competent to treat the newborn children in need of neonatal intensive care, as they are BAMS degree holders only," said the DCP.
The police said that there was no fire extinguisher installed in the hospital for any emergency in case of fire and besides there was no emergency exit in the hospital in case of any untoward incident.
Meanwhile, officials of the Fire Department said that the hospital has no NOC from the department.
"The building has no fire NOC. Rest we will also check documents related to the NOC on Monday," an official of the DFS said, requesting anonymity.
The police have arrested the owner of the hospital. Dr Naveen Kichi had been on the run since the fire outbreak late on Saturday, officials said.
The Delhi government has ordered a magisterial inquiry into the fire tragedy.
After the incident, District Magistrate (DM), Shahdara, Ritisha Gupta who reached the GTB Hospital faced the anger of grieving family members who shouted 'hume insaaf chahiye' (we need justice).
"Every single official who is visiting here is tightlipped. They have no answer if the hospital was legal? If the hospital was having any NOC from the fire department," said Ritik, who lost his 10-day-old child.