Shalini, mother of the three-month-old girl, had allegedly sold her daughter for Rs 15,000 to Bhavani, who is childless, after the infant's birth on October 7. Shalini later demanded more money from Bhavani, they said.
"When Bhavani refused to pay additional amount, Shalini approached the police on December 22 and lodged a complaint stating that her daughter had been kidnapped," Chilkalguda Police Station Inspector K Srinivasulu told PTI.
During the course of investigation, police found that it was Shalini who had filed a fake complaint and that she had sold her daughter, soon after giving her birth, to Bhavani, he said.
The buyers Bhavani and her husband S Raju were also arrested while the baby was sent to a child rescue centre, the police officer said.