An in-house Supreme Court panel has indicted Delhi High Court judge Justice Yashwant Varma over a scandal involving piles of unaccounted and partially burnt cash discovered at his residence earlier this year. The panel’s findings have triggered an ultimatum from the Chief Justice of India (CJI) Sanjiv Khanna: resign immediately or face impeachment proceedings.
The three-member committee, constituted on March 22, 2025, was tasked with examining the disturbing incident that unfolded on Holi evening, March 14, when a fire broke out at Justice Varma’s official residence in Delhi.
While the fire was doused without any casualties, what shocked authorities was the discovery of large quantities of half-burnt currency notes at the scene—a revelation that soon became viral after a video clip showing charred bundles of cash surfaced online.
The committee, comprising Chief Justice Sheel Nagu (Punjab and Haryana High Court), Chief Justice GS Sandhawalia (Himachal Pradesh High Court), and Justice Anu Sivaraman (Karnataka High Court), began their probe on March 25 and submitted their sealed report to the CJI on May 4. According to highly placed judicial sources, the panel found credible evidence of wrongdoing on the part of Justice Varma and stated that the judge has failed to offer a satisfactory explanation regarding the origin and presence of the undeclared cash.
Justice Varma, who claimed he was in Bhopal with his wife at the time of the fire, asserted that he had no knowledge of the cash, terming the entire episode a “conspiracy to frame” him. Only his daughter and elderly mother were at home during the incident.
Despite his denials, the investigation concluded that the allegations warranted serious action. “The report has indicted him. As per procedure, the CJI has called upon him. The first option given to him is to resign. If he resigns, it is good. If he does not, then the report will be sent to the President recommending impeachment,” said a source familiar with the proceedings, as quoted by Bar and Bench.
Justice Varma has reportedly been given until May 9, to respond to the CJI’s directive.
This marks a rare and serious moment in India’s judicial history. The Supreme Court not only took the unusual step of launching an in-house inquiry but also publicly released a preliminary report along with Justice Varma’s response earlier in March. The video footage of the burning cash, originally shared by the Delhi Police Commissioner, was instrumental in initiating the probe.
Following the incident, the Delhi High Court sent Varma back to his parent cadre—the Allahabad High Court, where he was recently administered the oath of office again. However, under direct instructions from the CJI, all judicial responsibilities were suspended, pending the conclusion of the investigation. The Allahabad High Court Bar Association strongly opposed his repatriation, staging a protest in response to the perceived erosion of judicial integrity.
Meanwhile, the Supreme Court, while hearing a plea demanding a criminal investigation and an FIR against Justice Varma, refused to intervene, citing the ongoing in-house probe.
In another unprecedented twist, Justice Varma had reportedly consulted a high-profile legal team including Senior Advocates Siddharth Agarwal and Arundhati Katju, and Advocates Tara Narula, Stuti Gujral, among others, soon after the inquiry commenced.
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