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The idols were spotted by villagers in the morning who went near the dam to relieve themselves.
Among those recovered were a two-feet-long Shiva linga, and white stone idols of Lord Hanuman, Lord Vishnu, Goddess Parvati and Nandi, police said.
As the news of the recovery spread, people from far and wide reached the spot. A tent was brought in by some people and a makeshift temple was set up with devotees starting to perform different rituals.
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The idols were found submerged in the dam’s water and likely to have been hidden there for selling, he said.
The dam, which supplies water to Hazaribag town and nearby villages, gets full during the rainy season but with the onset of the winter, the water has receded, exposing the idols kept hidden there, police said.
The idols were later seized and taken to the police station, they said.
All the nearby police stations have been asked to check if any such idols were stolen from the temples in their areas, Singh said.
Meanwhile, Bajrang Dal activists also rushed to the spot and demanded that security be beefed up at the temples in the district.
A large idol of Goddess Kali was recovered nine years back from the dam reservoir during excavation. Following this, the villagers of Kanchanpur and Charwa built a Kali temple on the western bank of the reservoir with their contribution and a large number of devotees visit the temple daily.
The dam was built by the Damodar Valley Corporation (DVC) in 1952.