Karma is 'activity' - of mind, thought, senses and body. Every activity has a trail of consequence which cannot be escaped. The accumulation of these consequences, according to Baba, results in impulse, habit, conduct, attitude and character. It also shapes future birth; it is the capital which each child brings along with it (the bundles of physical, mental and spiritual ills and skills) for its new career on earth. In order to deprive Karma of this consequence, which persists and binds, we have to (1) dedicate every act to God, be engaged in all activities as worship of God, without the least idea of being the 'doer' or (2) be engaged in activity as duty, without craving for the fruit without being worried about the consequence.
The Karma that is saturated with Thyaga is 'Dhwamsa' (destroyed, rendered incapable of consequence). Baba destroys the binding force of Karma by (1) instructing us in Jnana, for (jnanagni dagdha-karma), Jnana burns into ashes the effect of Karma; (2) drawing us through Bhakthi and enabling us to dedicate all activity to Him, for then, we know that He is our In-dweller; and (3) showering His Grace so that we may escape the deleterious impact of our own Karma. Baba says that 'Grace acts like an umbrella against sun and rain, so that he who has secured it will be saved from the rigours of Karma'. Faith in Baba and the courage He gives us enables us to laugh at the iron law of Karma. We have taken shelter at His feet and no harm can approach us (His children).