Police said they lodged a case on the basis of a complaint filed by Danupatti's village head.
Uttar Pradesh, in the past few weeks, has reported over 100 incidents of mob violence over child lifting rumours.
Senior police officials have reached the village. Three people have been detained and are being interrogated.
Child lifting rumours have been leading to mob violence in Uttar Pradesh since the past one month.
The victim was looking for a water source nearby when he saw the child and greeted him.
According to the police, the woman was thrashed allegedly on suspicion of child-lifting but police are not sure of reason yet and they are further investigating it.
According to police officials, transgender Basanti, a resident of Banswara, had come to Udaipur for some work.
The woman, Singh had accused of lifting a child, is mentally challenged and was rummaging through a pile of garbage in the village
The DGP called upon people to report any information on alleged child-lifters on emergency number 100 and refrain from law into their own hands.
The statement from the Uttar Pradesh police came hours after a man was allegedly killed and another got critically injured after they were beaten up by a mob on suspicion of child-lifting in Sambhal.
In a video that went viral, the woman can be seen crying and requesting people to leave her while the mob is seen thrashing her multiple times.
In the latest incident in Sambhal, a man suspected of being a child lifter was thrashed to death by a mob on Tuesday.
Despite their concerted efforts, the police are yet to succeed in quelling such rumours. A police advisory said that strictest action would be taken against those indulging in violence.
Sharing apples and bananas with children, who were grazing cattle, landed two geologists of Manipur and Kolkata in deep trouble on Monday evening in Bihar’s Rohtas district.
The victim was a mentally retarded man and he was beaten to death by a mob at Chulhaichak under the Rupaspur police station, Patna.