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Tyagi, who is popularly known as Computer Baba, was appointed as the chairman of a river trust by the previous Kamal Nath-led Congress government in the state.
According to Indore administration officials, during an investigation, illegal constructions and encroachments were found on two acres of government land in his ashram premises on the city’s outskirts.
The ashram is spread over 40 acres land, the market value of it is estimated at Rs 80 crore, they said.
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Tyagi and six of his associates have been sent to jail, he added.
According to local administration officials, the revenue department imposed a fine of Rs 2,000 on the ashram office-bearers some days back and asked them to remove illegal constructions from the government land.
However, as the illegal constructions were not removed, the administration took out the ashram belongings on Sunday and removed the encroachments amid heavy police security, they said.
A gaushala (cowshed) and a religious place would be developed on this land now, the officials said.
Before being appointed head of a river trust in the Kamal Nath government, Tyagi was given minister of state status by the previous BJP-led government also in the state.
Ahead of the 2018 state Assembly elections, Tyagi parted ways with the then Shivraj Singh Chouhan-led government, alleging that illegal sand mining was going on in the Narmada river.
Recently, in the run-up to the November 3 by-elections to 28 Assembly seats in the state, Tyagi launched a ”Save Democracy Campaign” and dubbed 22 rebel Congress MLAs who joined the BJP earlier this year as ”gaddar” (traitors).
The resignations of the 22 MLAs had led to the collapse of the Kamal Nath-led government in March this year, paving the way for the BJP”s return to power in the state.
These former Congress MLAs contested the recent bypolls as BJP candidates.