Carved in black stone, the 6"x 08" sized sculpture is of the Hindu Goddess seated on a throne along with four attendants.
The forces had launched a cordon-and-search operation in the Mochuwa area of Budgam, following inputs about the presence of ultras there, a police official said.
The accused has been identified as Danish Ahmed Dar, a resident of Check-Sari Singhpora Pattan.
Security forces recovered arms and ammunition during a search operation in the Budgam district of Jammu and Kashmir.
Farooq Ahmad Dar, an embroidery artisan, was tied to a bonnet of an army vehicle by Army Major Leetul Gogoi on April 9 and paraded in over a dozen villages to prevent stone pelting.