Auction house Christie's said the 41.2 gramme ring was sold to an undisclosed bidder at the auction in central London amid criticism from heritage groups.
The jewelled ring, inscribed with the name of Hindu God Ram in raised Devanagri script sold for 145,000 pounds, 10 times more than its estimated price, 'BBC News' reported.
The ring was allegedly taken from the slain body of Tipu Sultan at the end of the 1799 Srirangappattinam battle against the British East India Company's forces.
Earlier this month, Professor S Settar from India's National Institute of Advanced Studies had warned that the ring might be hidden from public view if it was sold to a private bidder, the report said.
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Settar urged the Indian government to "make use of all available avenues, legal and diplomatic, to recover the ring".
He even suggested that Indian philanthropists should have been encouraged to purchase the ring on behalf of the country.
Another group called Tipu Sultan United Front also urged the government to prevent the ring from being sold.
Known as the Tiger of Mysore, Tipu Sultan ruled the state for 17 years after succeeding his father, Hyder Ali.