The baby, who was asleep on a tarpaulin on an open plot of land, was run over by the car while it was backing up.
The car was being driven by the owner of the plot on which the girl's father, a labourer, had been allowed to set up a temporary dwelling.
The deceased girl has been identified as Shulochna, said assistant sub-inspector Manohar Singh.
No FIR has been lodged in the case as the girl's parents and the accused woman, identified as one Sunita Jhalani, have settled on a payment of Rs 1 lakh by the latter as compensation for their daughter's death, Singh said.
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