The incident took place this afternoon when the accused Satlal Irpache decapitated his own daughter Ritu (8) at a temple of goddess Kairmai, they said.
Confirming human sacrifice, police said prima facie it appears to be the case of superstition.
Senior officials, including sub-divisional magistrate Shailendra Vikram Singh and M A Qureshi, the in-charge of Keolari police station, reached the village and arrested Satlal.
Police have recovered the body of the girl and sent it for postmortem.
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