Justice Yashwant Varma Cash Row: Inquiry Panel Finds All Three Charges Proved

The three-member Judges Inquiry Committee has found all three charges proved against Justice Yashwant Varma in connection with the alleged discovery of unaccounted cash at his official residence, according to its report tabled in both Houses of Parliament on Wednesday.

Cash Found After Fire At Official Residence

The inquiry centred on the discovery of substantial quantities of ₹500 currency notes in a storeroom at Justice Varma’s official residence following a fire on the night of March 14, 2025.

The committee concluded that Justice Varma failed to satisfactorily explain the source, ownership or presence of the cash in the storeroom.

The panel also examined what happened to the room after the fire and noted that it was disturbed before it could be properly sealed and inspected, resulting in the loss of potentially relevant material evidence.

Panel Rejects Multiple Explanations

The committee noted that Justice Varma initially denied the allegations but subsequently offered several alternative explanations, including the possibility that the cash had been planted and that there had been a conspiracy involving others.

The panel said no supporting evidence was produced for these claims.

It also pointed out that no FIR or formal complaint had been filed alleging that the cash was planted or that evidence had been tampered with.

2 AM Interaction With Staff Highlighted

The inquiry report also flagged Justice Varma's interaction with staff at around 2 am after the fire.

According to the panel, Justice Varma did not disclose what was discussed during the interaction or what instructions were issued. The relevant staff members were also not examined in his defence to explain the communication.

The committee drew an adverse inference from the absence of a full explanation regarding the interaction.

Panel Finds Conduct Fell Short Of Judicial Standards

In its final assessment, the committee described Justice Varma's explanation as evasive, incomplete and misleading in effect.

It concluded that his conduct fell short of the transparency, candour and institutional responsibility expected from a judge of a constitutional court.

An earlier in-house committee constituted by then Chief Justice of India Sanjiv Khanna had also concluded that Justice Varma had “active or tacit control” over the storeroom where the cash was found.

Over 200 MPs Had Sought Removal

Justice Varma was serving as a judge of the Delhi High Court when the controversy emerged. He was later repatriated to his parent court, the Allahabad High Court.

In July 2025, more than 200 MPs signed a motion seeking his removal. Lok Sabha Speaker Om Birla subsequently constituted the three-member Judges Inquiry Committee to examine the allegations.

The committee submitted its findings to Birla in May, and the report has now been formally tabled in both Houses.

Justice Varma has since resigned, making the removal proceedings virtually infructuous. His resignation, however, has not yet been notified by the Law Ministry.