An alcoholic man allegedly sold his infant daughter for Rs 200 so that he could buy liquor at Datia in Bhopal district.
Accused Mohan Dhimar sold his daughter Radhika, aged one-and-a-half years, to a woman while his wife Pushpa had gone out of the house, police said.
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)