New Delhi, May 7, 2025: Justice Yashwant Varma has been indicted by a three-member in-house committee constituted by the Chief Justice of India (CJI), Sanjiv Khanna, in connection with the alleged recovery of unaccounted cash from his residence following a fire incident in March this year.
Highly placed sources have confirmed that Justice Varma has been asked to tender his resignation. If he fails to do so by Friday, May 9, the CJI is expected to forward the committee’s report to the President of India with a recommendation for initiating impeachment proceedings.
“The report has indicted him. As per standard procedure, the CJI has given him the option to resign. If he declines, then the matter will be escalated to the President,” a source familiar with the matter told Literal law.
Background of the Allegations
The controversy stems from a fire at Justice Varma’s Delhi residence on the evening of March 14, during which firefighters allegedly discovered large bundles of unaccounted cash. At the time of the incident, Justice Varma and his wife were reportedly in Madhya Pradesh. His daughter and elderly mother were present at the residence during the fire. A video later emerged showing currency notes engulfed in flames, which soon went viral and sparked widespread speculation and allegations of corruption.
Justice Varma has consistently denied the allegations, claiming the entire episode appears to be a conspiracy to defame him. Nonetheless, in light of the incident and the subsequent video evidence, the CJI constituted an in-house probe on March 22. 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)—formally began its inquiry on March 25 and submitted its findings to the CJI on May 4.
Fallout and Developments
The Supreme Court, in an unusual move, had earlier made public the preliminary report of the Delhi High Court Chief Justice as well as Justice Varma’s written response. Additionally, the video footage had been officially shared by the Delhi Police Commissioner with the Delhi High Court Chief Justice, further intensifying scrutiny.
Pending the outcome of the inquiry, Justice Varma had been repatriated to his parent High Court in Allahabad, where he recently took oath. However, following directions from the CJI, he has been divested of all judicial work temporarily.
The Allahabad High Court Bar Association had gone on strike to protest his repatriation, expressing dissatisfaction with the handling of the case.
In a separate development, the Supreme Court had declined to entertain a plea seeking the registration of a First Information Report (FIR) against Justice Varma, citing the ongoing in-house inquiry.
Justice Varma is understood to have consulted a legal team, including Senior Advocates Siddharth Agarwal and Arundhati Katju, and Advocates Tara Narula, Stuti Gujral, among others, soon after the internal investigation was launched.
The coming days will be crucial as the judiciary awaits Justice Varma’s response by the May 9 deadline.
