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The child was believed to be not more than two days old.
The minor girl was out with her mother to the market when she disappeared.
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The man was taken into custody after his foster daughter informed the police she suspected her father of killing his wife and daughter.
The other twin was found abandoned on the roof of the home.
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On Jan. 28, the toddler's father set his six children, wife, and himself on fire in an under-construction building over a property dispute.
The infant has been rescued and is currently safe at a child care center.