Shahi said police have seized all records, including documentary proof, in this connection.
However, opposition BJP members walked out of the assembly to protest Shahi's reply in the house.
The Bihar assembly was Monday adjourned following an uproar by the opposition who demanded a debate on the childrens' death in Bihar's Saran district.
Speaker Uday Narayan Chaudhary repeatedly requested the members to resume their seats and place the issue after the question hour.
But opposition members remained adamant over the issue, and demanded that their adjournment motion, moved by Leader of Opposition Nand Kishore Yadav, be taken up immediately.
The members shouted slogans, waved placards and dubbed the government "insensitive".
Last Friday, on the first day of the assembly's monsoon session, opposition members created a ruckus over the children's death not finding mention in the obituary references by the speaker.
This was the first assembly session after Chief Minister Nitish Kumar snapped the 17-year-old alliance of his Janata Dal-United with the BJP last month over a larger role being given to Gujarat Chief Minister Narendra Modi. The BJP is now in its new role as main opposition in the house.