Justice Yashwant Varma cash scandal: Impeachment likely

Speaking on the Justice Yashwant Varma cash scandal, eminent lawyer, editor of The Leaflet and head of NGO Lawyers' Collective Indira Jaising today told The Squirrels if the internal committee established by the former Chief Justice of India, Sanjiv Khanna, found Justice Yashwant Varma culpable, noting that the accusations levelled against him were credible and justified an impeachment, one must trust the judicial process to do justice in the alleged unaccounted cash case.

On 14 March, a fire at the official residence of Justice Yashwant Varma, then a Delhi High Court judge, uncovered a troubling discovery: piles of half-burnt currency notes in a storeroom. This incident, at 30 Tughlak Crescent, New Delhi, sparked a Supreme Court-ordered investigation that has now recommended Varma’s impeachment, casting a shadow over India’s judiciary. 

The three-judge panel, led by Chief Justice Sheel Nagu of the Punjab and Haryana High Court, alongside Chief Justice GS Sandhawalia of the Himachal Pradesh High Court and Karnataka High Court judge Anu Sivaraman, conducted a 10-day probe, examining 55 witnesses and visiting the fire site. Their 64-page report, accessed by media outlets, paints a damning picture of Varma’s conduct and oversight.

Unaccounted cash and controlled access

The inquiry confirmed that “bundles of high-denomination Indian currency notes, some of which were partially or fully burnt,” were present in the storeroom during firefighting efforts. At least 10 witnesses, including fire and police personnel, reported seeing the burnt notes, contradicting Varma’s claim of ignorance. 

The panel noted that the storeroom was “very much within the premises of the judge’s residence,” with access restricted to Varma and his family. Security measures, including a static 1+4 guard and a personal security officer, made it “well-nigh impossible” for the cash to have been planted, dismissing Varma’s conspiracy theory.

The report further questioned, “How does Justice Varma account for the presence of money/cash in the room (store room) located in his premises 30 Tughlak Crescent…?” Varma offered no plausible explanation, failing to disclose the cash’s source or ownership.

Suspicious conduct and evidence removal

The panel described Varma’s behaviour as “unnatural,” highlighting his failure to report the incident to police or judicial authorities. “If there was any conspiracy theory, why he chose not to file any complaint with the police officials or bring it to the notice of the Chief Justice of the High Court or the Hon’ble the Chief Justice of India regarding the fact that there were planted stories regarding the burning of currency notes in the store room which is part of his house?” the report asked.

On 15 March, the burnt cash was removed from the storeroom, allegedly by trusted domestic staff, including Rajender Singh Karki and Hanuman Prasad Sharma, under Varma’s private secretary’s direction. Karki, despite claiming he learned of the cash days later, was recorded in videos near the storeroom during the fire, undermining his statement.

The panel also flagged Varma’s daughter, Diya Varma, for giving contradictory statements about her knowledge of the cash and the storeroom’s contents.

Breach of public trust

The inquiry underscored that judicial integrity hinges on public trust, which Varma’s actions eroded. “The very existence of judicial office is founded upon the trust of the citizens at large and the quality and quantity of this trust is directly relatable to the behaviour, conduct and performance demonstrated by the judge, not only inside but also outside the courtroom,” the report stated. Whether the cash was stashed with Varma’s “tacit or explicit consent” was deemed irrelevant compared to the broader breach of trust expected of a high constitutional office.

The panel’s findings, forwarded by former Chief Justice of India Sanjiv Khanna to President Droupadi Murmu and Prime Minister Narendra Modi on 8 May 2025, recommended impeachment proceedings.

The report, made public by legal website The Leaflet on 19 June 2025, has fuelled demands for a cleaner judiciary. Varma, now at the Allahabad High Court but assigned no judicial work, faces mounting pressure to resign or face formal removal.

The scandal, described as a rare stain on India’s higher judiciary, raises urgent questions about accountability and transparency in the nation’s courts.