The baby was bought by a Delhi-based businessman.
Based on the complaint filed by the mother of the newborn, the police managed to locate the child and arrested the baby's grandfather and others involved in the heinous crime. However, the Delhi businessman who bought the infant is on the run.
The grandfather identified by police as Feroz Khan, a resident of Ludhiana city had allegedly kidnapped his grandson shortly after he was born earlier this month.
Khan reportedly sold his grandchild off for Rs 45,000 to a nurse at the hospital where the baby was born. The nurse then sold the newborn for Rs three lakhs to lab assistant in the same hospital, Gurpreet Singh, police said. According to reports, both worked at Ludhiana's Satyam Hospital.
It was Gurpreet who then put the baby up on sale on Facebook.
"All three people who conspired to sell the child have been arrested and we will be interrogating the businessman who paid the money to buy the baby," said Satish Malhotra, a senior police officer in Ludhiana.
The baby is handed over to the mother Noori Khan, a divorcee, who had lodged the complaint against her father.
The three accused have been charged with kidnapping and they will be produced before a court on Wednesday. If proven guilty, they could be jailed for seven years.