Large-scale industrial activities are leading to a substantial rise in industrial waste production, posing challenges for its disposal and potential environmental risks. In parallel, there are abandoned open-cast mines with deep craters getting filled with rainwater and providing breeding areas for mosquitoes, posing a danger to surrounding habitats. This study assesses the feasibility of disposing of red mud, a by-product of alumina extraction in cement plants, into three abandoned quarry ponds at Dalla, Uttar Pradesh, India. The focus is on assessing the stability of the ponds and the environmental impacts of red mud disposal. Due to its alkaline nature, red mud causes risks to the surrounding soil, groundwater used for agriculture and daily consumption, and nearby human settlements. The sedimentary rock quarry ponds are separated by uncut rock barriers, including a larger pond and three smaller ponds. The red mud disposal must ensure the stability of the pond walls and barriers, as any failure could lead to contamination of the surrounding soil and water, creating a significant risk. To evaluate the feasibility, comprehensive investigations were conducted, including topographic and bathymetric surveys, geological mapping, geophysical, and geotechnical assessments, at and around the ponds. Geophysical methods such as Electrical Resistivity Tomography (ERT) and Seismic Refraction Tomography (SRT) helped to identify subsurface features, seepage zones, and potential anomalies. Kinematic analysis using geological data, and stability and seepage analyses for the pond barriers with Slide2 software were performed to ensure safe red mud filling. The paper also discusses additional measures for safe disposal and a cost–benefit analysis. Geotechnical and geophysical investigations indicated that there are no major anomalies except for a few seepage points in the study area. While the rock barrier between the ponds is structurally stable with a factor of safety higher than the recommended values, potential small rockfalls and seepage from the barrier could occur. Total seepage of 1.137 × 105 m3/s is estimated through the pond barriers, from seepage analysis. It is concluded from geotechnical stability analysis and seepage analysis that ponds are safe to dispose of the red mud after implementing appropriate mitigation measures, including lining of ponds after dewatering.