The Indian Express reports that the incident was reported in Southeast Delhi's Govindpuri area.
The accused identified as Subodh Kumar reportedly kidnapped the neighbour's child when the parents were out shopping. He took the child to his house where he raped her and then brought her back to the parents, who thought that the child had gone missing.
"The child's parents, meanwhile, returned home to find her missing. They raised an alarm and started looking for her in the locality, thinking that the child, who had just started walking, had gone outside as she was unattended. Their neighbours too joined in the search," a senior police official is quoted as saying in the newspaper report.
This is when Subodh Kumar appeared with the child and put the baby back in the arms of the parents.
The mother later found that her child was unwell and was in great pain. While giving the two-year-old a bath, the mother found bruises and signs of trauma on the body, the report said.
When she took the child to a clinic, the doctor there advised her to take the child to the police station.
The police later took the child to a city hospital and sexual assault was confirmed. The police has registered a case against the accused.