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ANDREAS GEBERT AFP/Getty Images
NEW DELHI, India — The revelation that a convicted sex offender from Israel succeeded years ago in hiring a surrogate mother and taking a baby girl home from India sent shock waves through India's booming, controversial surrogacy industry this week.

But there is little that India or Israel can do at this point to influence the fate of the little girl, who is now 4 years old.

“The child is not going to be removed from the home now because according to the law in Israel if there's no proof that the parent is severely harming the child [the authorities] cannot take the child out of the home,” Elizabeth Levy, director of international relations at the Jerusalem-based National Council for the Child (NCC), told GlobalPost.

After receiving an anonymous tip via email, the NCC confirmed through its own investigation that the man caring for the young girl was a convicted sex offender, Levy said. He had spent 18 months in jail previously for sexually abusing young children under his supervision, the Jewish Chronicle reported.

The nonprofit group said they...