The arrest early this month followed a complaint by an Indian couple that they paid 120,000 rupees to Anima Indwar, who worked at the shelter run by the Missionaries of Charity in Ranchi, the capital of Jharkhand state in eastern India.
Police said they were investigating three other complaints.
A government statement said the states have been asked to have child care homes run by Missionaries of Charity inspected immediately.
Spokeswoman Sunita Kumar declined to comment on the government statement, but earlier said the Missionaries of Charity was investigating the allegations.
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