Stokes has now become the most expensive foreign player for the second year in a row.
Sandeep Lamichhane became the first player from Nepal to land an IPL deal when the 17-year-old was picked by Delhi Daredevils for two million rupees.
Seam bowler Jaydev Unadkat emerged as the most expensive Indian buy from the two-day auction when the 26-year-old was sold to Rajasthan Royals for 115 million rupees.
Twenty20 freelance Chris Gayle went unsold in two rounds but the swashbuckling left-hander was snapped up in the third round by Kings XI Punjab at his base price of 20 million Indian rupees (£222,074).
Kings co-owner, Bollywood actress Preity Zinta, announced there was going to be a “Gayle storm” in Punjab as a result of the signing.
IPL’s 11th season begins in April.