According to media reports, the ashram had received an MCD notice in September 2013 in connection with alleged land encroachment. Asaram's ashram has been constructed in the ridge area and spread across over 800 hectares.
No construction is allowed in Delhi's ridge area, said a Forest Department official.
The Delhi Government and the police will have to carry out the demolition and submit a compliance report in eight weeks. The ashram will have to bear the cost and also plant 1,000 plants in the ridge area.
An NGT-appointed committee had earlier said that Asaram's ashram was dumping garbage in the ecologically fragile central ridge and has expanded 'well beyond' the area allowed by the Supreme Court in 1996.
In its, 1996 order, the apex court granted 4,312 sq yards to the ashram along with an approach path of 350 feet.
The committee in its report had said, "Many of today's constructions were not there in 1996. The area is more or less the same but Ashram's footprint exceeds the area it was originally entitled to. There is clearing of undergrowth in the adjoining area, indicating its continuous use in violation of the Supreme Court directive".
At present Asaram Bapu is in jail in connection with a rape case filed by a 16-year-old girl.
Last month, the supreme Court had rejected his bail plea. While rejecting Asaram's bail plea, TS Thakur, the judge of the apex court asserted that the ground cited by Asaram was not of such urgency to grant him bail.
72-year-old Asaram Bapu was arrested and was lodged in Jodhpur jail after a 16-year-old girl lodged a police complaint on Aug 20, 2013 accusing him of sexually assaulting her at his ashram in Jodhpur. Asaram Bapu was accused of raping the girl inside his ashram near Jodhpur.