Shi Yongxin, the abbot of China's Shaolin Temple, attends the third Shaolin Cultural Festival with a team of 70 disciples in London, Oct 12, 2014. [Photo/IC]

The monastery denies all the allegations and has reported Shi Zhengyi to the police for "fabricated and malicious insults and libel."

Meanwhile, the BAC called for "the truth as soon as possible."

The accusation "concerns the image and reputation of Chinese Buddhism," the BAC said in a statement.

The latest scandal put the business model of the temple under spotlight.

"Perhaps Shaolin Temple should reflect on its business model and accounts management, and if it is not an institution capable of making proper independent decisions, then a competent authority should take the responsibility instead," said Xiamen Daily.

"Controversies concerning the abbot, which involve not only his private life, but also the business-oriented development path he has guided Shaolin Temple along, give the impression it is more being commercialized than any other religious body. Since such scandals damage the image of both the abbot and the temple, the accusation this time has offered an opportunity for Shi and the temple to clear their names, if indeed they can," the Beijing News wrote on July 29.

People's Daily called for a thorough investigation over the accusations.

"It is not enough for Shaolin Temple to complain to the police about the accusation or calm the heated online discussion about the scadal. A thorough investigation should be conducted to investigate the accusation and determine whether they are true. If it is proved false, it would not only return innocence to Shi Yongxin, but also mean the accuser can be held accountable by the law for the false accusation," said the newspaper.