Devon and Cornwall Police have confirmed they are looking into allegations of a recent incident at the nursery involving a child, which was reported by the family of the child involved.
One person has been arrested in connection with the incident and has since been released on bail until 27 August while the police and partner agencies continue to carry out enquiries.
Reports suggest parents of children at the setting have been sent letters from the nursery.
Registered to care for 52 children, the nursery was rated good in its most recent Ofsted inspection in 2016.
The setting received a notice to improve last month from Ofsted following an unannounced visit after the owner of the nursery notified the inspectorate about the alleged incident.
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