The ashram also plans to restart its charitable activities as soon as it has access to the funds. Nityananda is also taking legal action to get the charges against him quashed.
There are still many people who believe that the young godman, Swami Nityananda, was framed.
"The young swamiji, who is from a poor family, is now a global guru. We don't tolerate the attack - it was targetted, fabricated, and fake sting operations," said M Vasudeva Rao Kashyapa, Akhila Bharata Hindu Mahasabha.
At Nityananda's headquarters at Bidadi near Bangalore, the mood has lightened following his release on bail after more than 50 days in custody. His followers had fasted for his release and witnessed this purification ceremony on his return to the ashram.
"Swamiji is on bail and the accounts have been de-freezed so all are happy. We have filed a quashing petition - there are two FIRs which have been filed against swami. The quashing petition has been filed and the hearing is going on," said Vivekanand Gupta, advocate for Nityananda.
The state, on its part, does not seem to have been able to gather the evidence it needs to make the charges stick. Investigating officers were not available for comment.
When the ashram gains access to its funds in a few days time, it will go back to its charitable activities. Nityananda is also back in residence at his headquarters in Bidadi - and his followers do seem to hope the scandal will eventually disappear because of lack of evidence.