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The incident took place at Tulai village, a police officer said.
The 2-year-old girl went missing while playing near her house on Saturday evening following which local people along with the police launched a search in the area, he said.
Suspecting that the 16-year-old girl who lived nearby might be involved in the child’s disappearance, the police searched her house sometime after midnight and found the child’s body concealed in the house, he said.
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The accused was scolded by the victim’s mother a few days ago and the girl wanted to take revenge which allegedly led her to commit the crime, he said.
A case of murder under IPC section 302 has been registered.