The controversial godman sought Rs 10 crore as damages to his ashram property from the state government during search and seizures carried out in his Bidari ashram in Jun 2012.
However, the court claimed that the Nithyananda Dhyanapeetham Ashram in Bidadi had already been unsealed and returned to its owner. Though the court also stated, "the propriety of the seizure will be decided in appropriate proceedings later, if initiated."
Lawyer of Nithyananda earlier had issued the notice to former Karnataka Chief Minister Sadananda Gowda, Ramnagar District Deputy Commisioner and a regional news channel demanding Rs 10 crore for damages in his ashram.
Nithyananda, who recently has shifted his base from Bangalore, Karnataka to Madurai, always remain surrounded by controversies.
He was arrested for the first time in 2010 over a video where he allegedly was seen in a compromising position with a popular South Indian actress. Later, he was released on bail. But the 'godman' again was sent to prison in 2012.
This time, he was accused of assaulting a media person and also accused in several other charges such as rape, sexual harassment and land encroachment. Karnataka Chief Minister DV Sadananda Gowda ordered his arrest after a foreign national alleged that she was sexually abused at the hands of Nithyananda.
However, soon after the arrest order, Nithyananda went missing for 48 hours and later was arrested near Bangalore following his decision of surrendering himself before the court.
His ashram at Bidadi (near Bangalore), which was sealed following all these controversies, was unsealed later.