The David Owsley Museum of Art at Ball State University transferred the bronze sculpture of Shiva and Parvati to the custody of US Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
The idol had been looted from a temple in southern India and brought to the US illegally. The bronze sculpture, from the Chola Period (860 -1279 CE) was sourced illegally from Tamil Nadu under Kapoor's direction and smuggled into the US.
Kapoor had displayed the Shiva and Parvati sculpture for sale and misrepresented the idol's true origin, the HSI said in a statement.
In 2005, representatives from Ball State University became unwitting victims as Kapoor provided the museum with a false provenance for their artifact.
More From This Section
HSI special agents have tracked many false provenances provided by Kapoor. So far, HSI special agents, in conjunction with the Manhattan prosecutor's office, have netted in excess of 2,500 artifacts worth more than USD 100 million.
The statute will be shipped to New York where it will serve as potential evidence in 'Operation Hidden Idols'. Ultimately it is anticipated the item will be forfeited and repatriated to India along with at least six other sacred Chola bronzes recovered by HSI.
Previously several other major collecting institutions cooperated fully with the US and Indian governments in the investigation of works sold by Kapoor.
Kapoor is currently in custody in India awaiting trial for allegedly looting tens of millions of dollars' worth of rare antiquities from several nations.
Over the last three years, HSI special agents have executed a series of search warrants targeting Kapoor's Manhattan gallery, along with warehouses and storage facilities linked to the dealer.
Additionally, three individuals have been arrested in the US for their role in the scheme.