Rakhi Patra (20) of Mundamal village under Jajpur Road police station went to Cuttack on September 13 and handed the baby boy over to a person belonging to Jagatsinghpur, inspector-in-charge Aswini Kumar Sahu said.
After getting information about the incident, her mother-in-law Kanakalata Patra filed an FIR on September 21 alleging that Rakhi had sold off the child to an unknown person, he said.
Rakhi had also corroborated the allegation against her stating "Yes, I have given my son to a person of Jagatsinghur as I needed money to get my husband released from the jail", police quoted the woman as confessing before them.
Rakhi's husband Manoj Patra was arrested in a theft case and is an under trial prisoner (UTP) in the jail at Bagadi in Jajpur district since July 2, Sahu said.
The couple are daily wage earners.
Meanwhile, as a precautionary measure police had sent her to a short-stay home for women at Jajpur as her in-laws did not allow her to stay in their home and parents were absconding after the incident. Efforts were also on to trace the child.
The district collector, Anil Samal said he was aware of the incident and asked Tehsildar of Vyasnagar, Diptirani Sahu to inquire into the matter and submit a report soon. "Yes, it has come to my notice and it appears to be true", he said.