Villagers of Madanpura in Bhind district are collecting money through donations in order to build a house for a ghost.
The ghost, who was living on a tree, became homeless after the tree was uprooted.
Fear of the ghost has also made many leave their homes in the village, locat ed about 500 km from Bhopal.
"Earlier the ghost used to live on a tree, but it has now become homeless after the tree was uprooted in a storm a few months ago. He now wants a separate place to live in," one of the villagers said.
"They are so frightened that some have started leaving the village for fear of death." Seven families are reported to have left their homes to stay with relatives in neighbouring villages.
According to village head Akhilesh Purohit, many villagers told him that the ghost would come to them in their dreams and ask them to urge the panchayat (village council) to get a new house constructed for him. "But I would take it lightly."
Purohit says that he was frightened after he himself heard the ghost warning him in a dream to build a house as soon as possible.
"The problem is that the ghost doesn't want his new house to be constructed with donation by the villagers. He wants the house to be constructed through the panchayat and registered in his name. But the rules do not permit us to do any such thing," Purohit said.
However, the villagers decided to collect money for a house. The construction is slated to start soon, Purohit said.