A woman was found hanging from a tree in Kathirav village in Phulpur area while her two-month-old daughter and seven-year-old niece were found dead in the house on the outskirts of Varanasi.
The deceased have been identified as Kantidevi, 22, who had come to her parents' house from Jaunpur, her daughter Krishna and niece Khushi.
According to cops, Kantidevi was mentally ill. She killed the two girls in cold blood and then committed suicide by hanging herself from the tree, they said.
Villagers, however, are refuting the cops' theory and asserting that Kantidevi was raped and then murdered. The miscreants also killed the two girls, say villagers.
Cops have sent the three bodies for autopsy examinations.
According to reports, Kantidevi had come to her parents' house in Kathirav village from Jaunpur, where she was married.
On Monday morning, family members found Khushi and Krishna dead in the room, while Kantidevi was missing.
However, Kantidevi's body was found hanging from a tree few kilometres away from her residence.
"We thought that Kanti had killed both the girls and had fled. But we found her body hanging from a tree few kilometres away from the house," said Sunil Patel, brother of the deceased.
Jogender Kumar, senior superintendent of police, stated that the exact cause of the three deaths could only be ascertained after the post-mortem examination.