Swami Shankarananda. Photo: Gary Sissons/Mornington Peninsula News Group

A sex scandal has shattered the zen-like calm of an ashram in Mount Eliza, with revelations its "guru" and director, Swami Shankarananda, allegedly had sexual relations with dozens of women attending the ashram.

Distressed former members of the Shiva School of Meditation and Yoga claim Swami Shankarananda, 72, had sexual relationships with up to 40 women, and say a number have since sought counselling.

At a prayer meeting in December, a board member of the residential ashram - which has about 500 members and up to 40 "seekers", or residents - announced the ashram was aware of sexual allegations against American-born Swami Shankarananda, also known as Russell Kruckman, and he would be standing down as director.

The ashram then released a statement to members saying it was aware the swami had had "secret sexual relations" with a number of women over time but he had never claimed to be a sexual renunciant or demanded celibacy from his disciples.

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"It is well known that our lineage is a tantric path, involving worship of the Goddess with strict disciplines," the letter says. "...until now Swamiji has kept aspects of the teaching and his personal activities secret in line with age-old Hindi tantric scriptures."

"Swamiji now accepts that this is not appropriate, and he must be transparent both personally and in the teachings."

The letter goes on to say that while the board has been advised there is no basis for criminal complaint, the activities in question raise a number ethical questions, and free counselling is available.

"Swamiji has asked us on his behalf to reiterate his message for the year of holding the feeling - that is, stay away from enmity, and keep returning to love."

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Guru sex scandal at Mount Eliza yoga retreat