Updated
The Chief Justice of the Family Court, Diana Bryant, says the case shows why there needs to be a national inquiry into surrogacy.
A joint investigation by ABC News and Foreign Correspondent can reveal the case involves a set of twins born in India via a surrogate to Australians who had gone through a surrogacy agency.
Chief Justice Bryant says consular officials revealed to her there was pressure from Australia to provide a visa to allow them to return one baby to Australia, as the commissioning parents did not want both babies.
It is understood the choice of baby was based on gender.
"These women were extremely concerned about what was happening. They were doing the best they could, they told me, to persuade the parents to take both children, to negotiate with them."
Chief Justice Bryant told the ABC that in the meantime the consular staff delayed giving the Australian parents a visa while they tried to convince them to take both children home.
It was at this time the consular officials told the Chief Justice that pressure was being applied from someone in Australia.
"In the meantime they were getting pressure from Australia to grant the visa," she said.
"They told me in the end they couldn't persuade the couple to take both children and they had to grant the visa to bring the one child back.
"I asked them what happened to the other child. They said someone in the end had come forward - and they said they were known to the family - and took the child, but they expressed to me their great concern that in fact money had changed hands."
Chief Justice Bryant says if it is true that a sum of money changed hands so another family would take the abandoned child, this could be tantamount to human trafficking and a criminal offence.
"I think it is appalling. It's a breach of all sorts of human rights conventions and it's a criminal offence in many places if that is so," she said.
Concern Australian politician advocated on behalf of parents
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