According to the police, Saumya, daughter of one Shamsuddin and Thulasi, hailing from Vannanthura hamlet, was allegedly sold by her father for Rs 80,000 to a family in Thrippunithura in Ernakulam district.
The mother had complained to the police about her missing daughter two days back, which led to the father and a middleman yesterday.
On getting clues about the place where the toddler had been taken, local police alerted their counterparts at Thrippuinithara and the child was traced late last night.
A case had been registered against them based on different sections of Juvenile Justice Act and SC/ST Act, they said.
The child and the mother are lodged at a shelter home in the district, police added.