I do not know about Molika, but can guess it is a variant of the name I know as Mallika. The word is of unknown origin but means a Jasmine. The pronounciation of this word in Eastern India would be close to Mollikaa, though in other parts it may be MallikA.
The only other name that comes to mind is MAlikA, a gardener or garland trader. The word is also of unknown origin and refers to garlands and gardening.