The incident occurred outside Radio City hall in Manhattan yesterday evening as thousands people, mostly Tibetans and Nepalese-American, were coming out after listening a sold out lecture from the Dalai Lama on the Four Nobel Truths about Buddhism.

Some of those who attended the lecture had paid as much as USD 1000.

As they came out, they were confronted by the demonstrators. Some among them started shouting at the protesters and waving currency notes to make the point that the demonstrators were paid Chinese agents, a charge which spokespersons of the protesters vehemently denied.

More and more supporters of the Tibetan spiritual leaders joined them and at one stage thousands were participating in a worldly duel.

Police on horseback and ground set up barricades to separate them and physically pushed back some of the supporters of the Dalai Lama as tried to advance towards the demonstrators to prevent a possible clash.

Asked during a question and answer session about the demonstration which had begun much before the Dalai Lama began his address, he described their faith as "just spirit worship."

Conceding that he had followed the practice from 1951 until 1970s, the Dalai Lama said he had given it up after he realised that it was a mistake. By giving it up, he was able to explore other teachings of Buddhism.

"I think 99 per cent of Tibetans follow my practice.

Some small portion worship this spirit," he said but asserted it is "perverted or wrong in terms of their function if their spirit is to harm other sentiments beings or the Dharma."

He also asserted that the sect did not allow religious freedom and discouraged any other Buddhist teachings.

Refuting the charge of demonstrators that he was suppressing their sect, the Dalai Lama said on the contrary, he is encouraging religious freedom.

Alleging "hidden and intensive persecution" of thousands of Tibetans who offer prayers to Buddhist Deity Dorje Shugden by the Dalai Lama, the Western Shugden Society (WSS), which spearheaded the protest, demanded that he lift the ban as it causing "spiritual, emotional and physical harm" to them.

The supporters of the WSS, umbrella organisation of Shugden practitioners, have been protesting at every venue where the Dalai Lama speaks for last one week but this was the most visible protest held so far.

It says through his power as head of the Tibet government, the Dalai Lama has "imposed an aggressive, forced" ban on this practice, claiming these prayer "harm his personal health and the cause of Tibet."

Spokesperson of WSS nun Kelsang Pema said since this "enforced ban" by the Dalai Lama is causing so much spiritual, emotional and physical harm to practitioners both in India and the West, they have no choice but to hold demonstrations.

For years, she said, he has refused to engage in dialogue on the issue.