The Indian Medical Association has launched a probe after three doctors were shown on television offering to amputate beggars' limbs for money
The secret filming apparently shows one senior doctor offering to perform the operation for the equivalent of $200.
There have long been rumours that criminal gangs pay for the amputation as beggars are able to generate more sympathy and make more money.
The police say they will investigate the allegations.
One of the surgeons, who works in a government hospital on the outskirts of Delhi, is seen examining a street beggar, and offering to amputate his leg.
"Where do you want to cut it?" he is heard asking on the secret recording. "From anywhere," the beggar replies.
The doctor suggests amputation below the knee to make it easier to fit an artificial limb.
He says he will induce gangrene by restricting the flow of blood so that the operation appears to be necessary, and he asks for 10,000 rupees, about $200.
Two other senior doctors are also alleged to have offered to perform similar operations for cash.
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