CJI Khanna orders in-house probe against justice Varma amid cash controversy
The Supreme Court has also directed he chief justice of the Delhi high court not to assign any judicial work to justice Yashwant Varma
New Delhi: Chief Justice of India (CJI) Sanjiv Khanna on Saturday constituted a three-member committee to conduct an inquiry into the allegations against Delhi high court judge Yashwant Varma following the reported discovery of a large stash of cash from the judge’s residence last week. Justice Varma’s judicial duties have also been withdrawn pending the inquiry.
The committee comprises justice Sheel Nagu, chief justice of the Punjab & Haryana high court, justice GS Sandhawalia, chief justice of the Himachal Pradesh high court and Anu Sivaraman, judge of the Karnataka high court.
“The chief justice of the High Court of Delhi has been directed not to assign any judicial work to justice Varma,” said a statement issued by the Supreme Court administration.
The controversy began with a fire at Justice Varma’s official residence on Tughlak Road at around 11.35pm on March 14. The Delhi Fire Services (DFS) responded swiftly and extinguished the fire within minutes. However, first responders—including personnel from DFS and possibly the police—are believed to have discovered stacks of cash in the store room, some of which were reportedly charred. Justice Varma and his wife were in Bhopal at the time.
Though DFS chief Atul Garg publicly denied any knowledge of cash found at the scene, sources suggest that a video documenting the recovery was made by first responders and subsequently reached chief justice Upadhyaya. The CJI on Thursday informed the members of the Supreme Court collegium about the video before the proposal to transfer Justice Varma was formalised. CJI Khanna had advised justice Upadhyaya to attach this video with his final report for a comprehensive assessment.
On Thursday, the Supreme Court collegium, comprising CJI Khanna and justices Bhushan R Gavai, Surya Kant, Abhay S Oka and Vikram Nath, unanimously recommended justice Varma’s transfer to Allahabad high court. However, during the deliberations, two members of the collegium strongly argued that transferring the judge alone was insufficient and that an in-house inquiry was warranted. One member insisted that Justice Varma be stripped of judicial work immediately, while another pressed for a more formal investigation, emphasising the need for institutional accountability.
The matter has drawn sharp reactions from within the judiciary and the legal fraternity. The Allahabad High Court Bar Association (HCBA) strongly opposed the collegium’s decision to transfer Justice Varma, questioning whether the Allahabad high court was being treated as a “dumping ground.” “Corruption is unacceptable,” the HCBA wrote in a statement, adding that it was “taken aback” by the decision. The association pointed out that the Allahabad high court was already grappling with a shortage of judges and that transferring a judge facing allegations of impropriety raised serious concerns.
The issue also resonated in Parliament. In the Rajya Sabha, chairman Jagdeep Dhankhar responded to Congress MP Jairam Ramesh’s call for greater judicial accountability by stating that he would explore mechanisms for a structured discussion on the matter. Dhankhar appeared to allude to the long-standing debate over the National Judicial Appointments Commission (NJAC), which was struck down by the Supreme Court in 2015, though he did not name it explicitly.
As the controversy deepens, the next steps will hinge on CJI Khanna’s evaluation of justice Upadhyaya’s report. While the collegium’s recommendation for justice Varma’s transfer proceeds independently, the report recommending an in-house inquiry adds further pressure on the judiciary to ensure transparency and accountability. CJI Khanna had on Friday morning assured Supreme Court judges that he is committed to taking the matter to its logical conclusion while adhering to procedural norms.
Justice Varma, originally appointed as a judge of the Allahabad high court in 2014, was transferred to the Delhi high court in October 2021 following a collegium recommendation led by then-CJI NV Ramana. Before his elevation to the bench, he had served as a special counsel for the Allahabad high court and as standing counsel for the Uttar Pradesh government.