A centre run by followers of Swami Paramhamsa Nithyananda, allegedly involved in a sex scandal in southern India, will not close down and will continue to promote his teachings, a Hindu leader said.

Malaysia Hindu Sangam (MHS) president R.S. Mohan Shan said they have taken this decision as Nithyananda's teachings were not against Hinduism.

'If the case is proven against Swami Nithyananda, we will just advise the centre to change its name and continue its activities which are in accordance with the religion,' The Star newspaper quoted him as saying Wednesday.

'So far, we have not received any information and therefore, we are not in a position to issue any directive for the time being,' he said.

A sensational video footage allegedly shows Nithyananda, who originally hails from neighbouring Tamil Nadu, in a compromising position with two women.

The man in the clip appears to be Nithyananda and one of the women a Tamil actress who has played leading role in many films and TV serials.

He has a large following amongst the two-million strong Indian diaspora in Malaysia.