The case happened in 2015 but only came to light this week after police finally agreed to investigate, according to the Times of India.
Reports say Moshin, a well-known gambling addict, was betting against a man named only as Imran.
At one point Moshin bet his wife and two children but lost, after which Imran went to the loser’s house to collect his prize.
The wife, who has not been named, protested and so a panchayat – or village council – was called to decide the case.
The council ruled that the wife and one child should be allowed to stay behind, while the other child had to be given away to satisfy the debt.
The wife, who had been married to Moshin since 2012, subsequently demanded a divorce before remarrying a younger man from a different New Delhi district.
She also wanted to file a legal complaint but was shunted between police departments for two years as they refused to take the case.
She eventually filed a petition at a district court and on Monday a judge ordered officers to look into the matter.
Investigators have now opened a case and are searching for the accused, who has since left his home.
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