Police accuse the guru's armed devotees of holding people hostage, and using women and children as human shields.
At least 270 people have been arrested in connection with Tuesday's clashes and charged with rioting, illegal detention, attempt to murder and waging war against the state.
The authorities also cut off power and water supplies to the site.
Mani Ram, a devotee who managed to escape, told the Indian Express newspaper that ashram authorities had prevented them from leaving for two days, insisting police would kill them if they went outside.