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Six franchises bid for the 24-year-old versatile player before Punjab finally claimed success.
Harry Brook of Yorkshire has been sold to Sunrisers Hyderabad for £1.35million.
The 23-year-old was England's top scorer in their recent 3-0 series win Testing in Pakistan.
Curran was named Player of the Tournament at this year's Twenty20 World Cup after helping England become double white ball world champions.
He took 13 wickets at an average of 11.38 at last month's event in Australia and improved his batting to become a true all-rounder.
"Back to where it all began! Can't wait for it," Curran tweeted.
Most Expensive Former IPL Player was South African all-rounder Chris Morris, who was signed by Rajasthan Royals for £1.6m in April 2021.
That figure was surpassed again on Friday, when Mumbai Indians paid £1.75m for Australian all-rounder Cameron Green. All-rounder Ben Stokes was acquired for £1.63m of pounds by Chennai Super Kings - one of the franchises to miss Curran.
Adil Rashid will join Brook at Hyderabad, while Will Jacks and Reece Topley were signed by Royal Challengers Bangalore and Delhi Capitals took Phil Salt.
Former Test captain Joe Root was initially unsold but was later bought by Rajasthan Royals for £100,000.
Left-arm dressmaker Josh Little has become the first Irish player to win a full IPL contract as he was signed by the Gujarat Titans for nearly £450,000 .
18-year-old English spinner Rehan Ahmed, Tom Curran and Chris Jordan have all gone unsold.< /p>
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