It is very cut and dry and simpler than you are making it seem. Return the stolen items to the Indian government and let the domestic courts decide based on cases claimants put forth.
According to the article it's not that simple. The governments of Pakistan and Afghanistan also claim ownership. Why should the Indian domestic courts decide whether it stays in India or goes to one of those other countries?
Why would Indian courts be appropriate if (as /u/alephnerd write here https://news.ycombinator.com/item?id=32860918 ) Pakistan and Afghanistan are potential claimants as well? Why not send it to Pakistan or Afghanistan and let one of their court systems decide?