“An initial examination of the girl’s body suggested that she was gang-raped and murdered later. Further investigation into the incident is under way,” said Superintendent of Police Arun Kumar BC.

The child’s body was found near Dhaneshwor Temple and IT Park. Villagers and security personnel had been searching for her.

They earlier believed that the girl could have been whisked away by a leopard as there is a dense forest near the settlement.

The body was thrown into a pit and covered by bricks and stones. The victim’s private parts were swollen. The body was taken to Scheer Memorial Hospital for postmortem.

Police are said to have identified four suspects. Roshan Bogati, a local, and Yuvaraj Lama, an SOS student of Sindhupalchok, have been held while the two others are at large.