The sessions court had denied relief to Dr Atit earlier this month, after which he approached the High Court, which asked him to cooperate with the Detection of Crime Branch. He is yet to be arrested, but was questioned by the police.
Briefing newspersons here, Joint Commissioner of Police (Crime) A K Sharma said, "During the interrogation, it has come to light that Dr Atit had sold off two babies for Rs 8 lakh to a couple in Porbandar".
"Despite the accused not cooperating, we have found out through our sources that two children were sold to a doctor couple in Porbandar. The couple's admission has given credence to our theory," Sharma said.
"The blood samples of the sold babies were collected and reports have corroborated our finding that the babies do not belong to the couple," Sharma said.
Atit's wife Malini Atit is a former city Mayor.
"We are also investigating whether there were other children sold off through this racket," Sharma said, adding that police will seek his custody.
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The matter came to light when a surrogate mother alleged that her child was sold off by the doctor.
The lower court had refused to grant anticipatory bail after holding that there seemed to be a prima facie case.