The Chennai police on Friday rescued an eight- year-old girl a day after she was kidnapped by unidentified persons for a ransom of Rs 5 lakh and arrested a priest who allegedly masterminded her abduction in a bid to make money to pay off loan.

Sufiya Hussain, daughter of Amjad Hussain who runs a medical transcription company in Chennai, was traced on Wednesday morning near a church at suburban Red Hills where the kidnappers were believed to have been hiding, police said.

The police said Karthik kidnapped the girl after telling her that her father had sent him to pick her up, following which the unsuspecting girl went with him.

"We kept tracing the cellphone calls made by the kidnappers and reached the spot in the morning. However, the kidnappers fled the scene leaving the girl behind," police officials said.

Police sources said parents of the second standard student of a city school had received a telephone call on Wednesday evening demanding the ransom to release the girl.

Contrary to the police's suspicion of an insider's hand in the abduction to settle a family dispute, investigations showed the kidnap was stage managed allegedly by the priest for monetary gain.

Chennai Police Commissioner G Nanchil Kumaran identified the priest as one Prem Karthik and said he was the mastermind of the kidnap of the girl.

Kumaran said Karthik kidnapped the girl with a view to making some quick money and settle some pending loans.

He also said that police have detained three more persons for their suspected role in the kidnap.