Pushpa returned home to find her daughter missing, but her husband did not reveal anything.
Later, the neighbours told her they had seen Mohan handing over the baby to an unidentified woman. She then found out that Mohan had sold their child in order to buy liquor.
Acting on Pushpa's complaint, police on Friday evening registered a case of abduction.
Pushpa said her husband had earlier sold household goods to buy liquor.
The woman who took the baby is yet to be identified.
"The child's father is in custody and being interrogated. We are looking for the baby," said inspector general of police DC Sagar.
(With inputs from Subhash Jain in Bhind)