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The BJP leader has denied the allegations.
The move intends to reduce fraudulent use of the vehicles.
A video of the same has been making rounds on social media.
Bihari Lal decided to take his wife to the hospital in a three-wheeler after the ambulance failed to reach their place for over two hours.
The newborn, who was premature, died within minutes of the delivery.
Less than a week ago a similar incident had taken place in Kalahandi.
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