Hyderabad, April 23 :    Hyderabad, April 23:  Barely two years after a child adoption racket rocked Andhra, police last night arrested the director of a city-based orphanage on charges of illegal confinement of infants and child trafficking. Police had raided an adoption home, Action for Social Development, last week and rescued 34 infants. Its director Sanjeev Rao was nabbed on a complaint filed by the state child welfare and women's development department. Rao had been running the orphanage at Gandhi Nagar in the heart of the city though his licence had been cancelled two years ago for his involvement in another child adoption racket. In 1999, police had bust a scam involving sale of infants to childless foreigners. These babies were mostly purchased from poor people for Rs 1,500 to Rs 3,000, and then sold for between Rs 25,000 and Rs 1 lakh. Getting the whiff of a similar racket, officials raided Rao's centre and John Abraham Memorial Bethany Home at Tandur in neighbouring Ranga Reddy district on Friday last and rescued 94 infants - all of them girls - from the two centres. Rao has been charged under sections 342, 353, 420, 468, 175, 188 and 506 of the Indian Penal Code. The director, however, claimed that his centre had stopped foreign adoptions after his licence was cancelled in 1999 by the Central Adoption Resource Agency. Most of the infants recovered were suffering from high fever and chest infection. A three-month-old baby girl died while being shifted from the Tandur Centre following respiratory illness, police said. Some 20 infants were admitted to the women and child welfare department's Niloufer Children's Hospital. They will be discharged in a week and handed over to Shishu Vihar, a government-run child care centre, hospital superintendent N.C.K. Reddy said. 'Their condition is now totally stable,' Reddy said, adding that a team of doctors from the hospital will visit Shishu Vihar, where rescued infants were kept. Chief minister N. Chandrababu Naidu today visited Sishu Vihar and the orphanages. The government also issued an ordinance making it illegal for biological parents to donate children for adoption. The state said it will monitor all the children's homes and make rigid rules for inter-country adoptions. CID officials took up the investigation today and seized some documents from the premises of John Abraham Memorial orphanage, whose owners are absconding. The state government has announced a reward of Rs 1 lakh for clues leading to their arrest. There were also reports that poverty-stricken tribals, particularly in Ranga Reddy, Mahaboobnagar, Nalgonda and Medak districts, were selling female infants. 'Apart from tightening adoption norms and the monitoring mechanism, we need to launch a massive educational campaign to rid the tribal community of superstitious beliefs regarding the girl child,' a top official said.