According to a report in The Australian, another antiquity trader has been arrested who may be involved in the looting of two pieces – an 1800-year-old limestone carving showing a scene from the life of Buddha and a 12th century statue of the Hindu goddess Pratyangira.

The report says investigators believe antiquity trader Deena Dayalan sold these two sculptures to disgraced New York art dealer Subhash Kapoor, who is awaiting trial in an Indian prison.

Kapoor sold the pieces to the NGA in 2005, which paid $800,000 for the Buddha and nearly $340,000 for the goddess Pratyangira.

Following an investigation by the NGA of its Asian art collection, the uncertain provenance of the works had already been flagged in the Crennan Report, released by the gallery in February, which identified at least 22 works under suspicion.

The report, conducted by former High Court Justice Susan Crennan, found 22 objects from the gallery's Asian collection had "insufficient or questionable" documentation, including 14 pieces purchased from Art of the Past – a New York art gallery owned by Kapoor, who is accused of smuggling more than $100 million of looted or stolen art from India.

The NGA was embroiled in the scandal after it was revealed that one of its showcase pieces, the $5.6 million Dancing Shiva, was purchased from Kapoor.

Then prime minister Tony Abbott returned the piece personally to India in 2014.

In a statement on Monday, the NGA confirmed that the two objects were the subject of discussions with Indian authorities.

"The NGA has conducted thorough provenance research into these two sculptures and is working closely with Indian authorities on the next steps," the NGA said.

"The Crennan Report, which the NGA released in February, identifies these sculptures as having suspect and insufficient provenance and it is certainly possible they will be returned at the conclusion of discussions with authorities."