API G J Jaid of Central Police station in Ulhasnagar told PTI that the matter came to light yesterday when activists of NGO 'Sangharsh' received a tip off that a child was about to be sold in Joshi Nursing Home at Dharavi, Asia's largest slum.
The activists rushed to the hospital and took charge of the infant and subsequently lodged a complaint.
Subsequently, offences were registered against mother Sunit Lahuri, three other accused Ratna Ubale, Sunanda Raju More, Babita Hivre and a doctor from the nursing home, whose identity has been kept in wraps.
Also, the amount for which the baby girl was being sold is still unclear as investigations are underway, Jaid said.
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Santosh Bhimrao Kharat of Sangharsh, who saved the child from being sold alleged that this child racket was going in the hospital for long.
According to him, the modus operandi was that agents (women in the guise of hospital attendants) identify pregnant women and strike a deal with them.
In the sixth month (of pregnancy) itself it is decided that if the child is a female they would get Rs 50,000 and if its a male they would get Rs 1,00,000, Kharat told PTI.
The girl's father works in a sweet meat factory manufacturing biscuits in Ulhasnagar here.
Kharat also said that the mother of the child was admitted without any records in the hospital at Dharavi since last nine days to facilitate the deal and delivery of the child.
The three women who have been booked served as agents, who frequented the hospital to gather information about the pregnant women and probable sellers.
Another woman, who posed as a social worker also visited the hospital frequently and clicked pictures of new born babies and posted it on mobile network apps for probable customers before finalising the deal, he said.
No arrests have been made so far in the case.