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There are also accusations that the police did not invoke the Juvenile Justice Act against her, which could lead to her losing her position on the CWC.
Police nabbed the accused in the case -- Hassankutty alias Kabir (50), of Ayirur in Varkala -- from Chinnakada in Kollam yesterday.
The police traced the woman and her two children to a camp of beggars in Coimbatore.
The Childline officers had rescued the minor from the premises of the railway station by 4.50 am. It is understood that the two are not Malayalis.
At the age of 10, Devika was rescued by the Child Welfare Committee (CWC) from a house in Kasaragod, where she was working as a domestic help.
Woman tells police she sold her baby due to financial problems
The mother who sold the newborn is yet to be found. It is also suspected that she provide a fake address at the hospital.
The infant was sold to a Thiruvallom native at a hospital in Thycaud for Rs 3 lakh.
The Child Welfare Committee of Kasaragod united a 16-year-old girl with her newborn daughter 20 days after the state government separated them.
Recently, reports had emerged about the plight of the minor mother and her infant, attracting the attention of the CWC.