The controversy surrounding Delhi High Court Justice Yashwant Varma has intensified following the discovery of partially burnt currency notes at his official residence after a fire on March 14, 2025. This incident has prompted a comprehensive investigation and reignited scrutiny over Justice Varma’s past financial dealings.
In-House Inquiry Initiated
In response to the cash discovery, Chief Justice of India (CJI) Sanjiv Khanna has constituted a three-member committee to conduct an in-house inquiry into the allegations against Justice Varma. The committee comprises:
- Justice Sheel Nagu, Chief Justice of the Punjab and Haryana High Court
- Justice G.S. Sandhawalia, Chief Justice of the Himachal Pradesh High Court
- Justice Anu Sivaraman, Judge of the Karnataka High Court
During the inquiry, Justice Varma has been relieved of his judicial duties. The findings of this investigation could lead to serious consequences if misconduct is proven.
Clarification on Transfer to Allahabad High Court
Amid speculation linking Justice Varma’s transfer to the Allahabad High Court with the cash discovery, the Supreme Court clarified that the transfer decision was unrelated to the ongoing investigation. The Court emphasized that the transfer was a routine judicial appointment and condemned the spread of misinformation regarding the matter.
Historical Allegations: Simbhaoli Sugar Mill Fraud Case
The recent events have also brought renewed attention to Justice Varma’s alleged involvement in the 2018 Simbhaoli Sugar Mill fraud case. In February 2018, the Central Bureau of Investigation (CBI) registered an FIR against 12 individuals, including Justice Varma, who was named as the tenth accused in his capacity as a Non-Executive Director of Simbhaoli Sugars Limited. The case involved the alleged misappropriation of a ₹97.85 crore loan intended for farmers. Despite the severity of the allegations, the investigation lost momentum, and no significant action was taken against those named in the FIR. In February 2024, a court ordered the CBI to resume the investigation, but the Supreme Court overturned this directive, effectively ending the probe into the financial irregularities involving Simbhaoli Sugars and its directors.
Next Steps
The in-house inquiry into the cash discovery at Justice Varma’s residence is ongoing, with no specific timeline for its conclusion. The legal community and the public are closely monitoring the developments, as the outcome could have significant implications for judicial accountability and transparency in India.
Justice Varma has denied any involvement with the cash found at his residence. The Supreme Court has made available the report submitted by Delhi High Court Chief Justice D.K. Upadhyaya, Justice Varma’s response, and other related documents on its website for public access.