On Saturday, the Supreme Court made a detailed probe report regarding the startling cash recovery incident at the residence of Delhi High Court judge Yashwant Varma public. The report, accompanied by a formal letter from Delhi High Court Chief Justice Devendra Kumar Upadhyaya and a written response from Justice Varma himself, included visuals depicting bundles of charred currency notes discovered in a room of his official residence following a fire on March 14. The findings have raised serious questions, leading to demands for a deeper investigation.
The report relies heavily on the findings submitted by the Delhi Police Commissioner, who led the initial inquiry. Chief Justice Upadhyaya, in his letter to the Chief Justice of India (CJI), emphasized the gravity of the situation, urging for a thorough and impartial investigation into the matter to ensure transparency and accountability. The comprehensive 25-page report includes statements from multiple witnesses and security personnel stationed at Justice Varma’s residence.
Justice Varma, however, strongly refuted the allegations, calling the entire episode a “conspiracy to frame and malign” him. He maintained that neither he nor his family had any knowledge of the cash, asserting that the room where the burnt currency was found was commonly accessible to a range of people — including household staff, gardeners, and even personnel from the Central Public Works Department (CPWD). He argued that such an openly accessible storeroom could not reasonably be considered a secure hiding place for illicit money.
Chief Justice Upadhyaya, however, rejected this line of defense. He pointed to the Delhi Police Commissioner’s findings from March 16, which mentioned that the area was cordoned off and supervised by security personnel after the fire was extinguished. The report clarified that the partially burned cash was recovered from debris that was cleared out of the room the following morning. Upadhyaya stated that his own inquiry did not support Justice Varma’s claim that the room was easily accessible to outsiders or staff without supervision. He remarked, “The enquiry conducted by me, prima facie, does not reveal the possibility of entry or access to the room by any person other than those residing in the bungalow, the servants, the gardeners, and CPWD personnel, if any.” He concluded by stating that the matter demanded a “deeper and independent probe” to uncover the truth and prevent any miscarriage of justice.
Justice Varma responded to the report with visible frustration, expressing his disbelief at the video evidence presented alongside the findings. He insisted that the video depicted a scene different from what he witnessed personally. “I was totally shocked to see the contents of the video since that depicted something which was not found on-site as I had seen it. It was this which prompted me to observe that this clearly appeared to be a conspiracy to frame and malign me,” he said in his written response to the Delhi High Court Chief Justice.
Chief Justice Sanjiv Khanna, overseeing the inquiry, posed pointed and direct questions to Justice Varma: How does he account for the presence of such a large sum of money on his premises? What is the source of the cash? Who accessed the room after the fire and handled the burnt currency? Justice Varma reiterated his innocence, stating, “The very idea or suggestion that this cash was kept or stored by us is totally preposterous. The suggestion that one would store cash in an open, freely accessible, and commonly used storeroom near the staff quarters or in an outhouse verges on the incredible and incredulous.” He further emphasized that his financial records were fully transparent, with all transactions conducted through authorized banking systems, UPI platforms, and card payments — leaving no room for speculation about hidden cash.
In response to the growing controversy and mounting pressure, Chief Justice Khanna announced the formation of an independent three-member in-house committee to conduct an unbiased, in-depth inquiry into the allegations surrounding Justice Varma. The committee includes Justice Sheel Nagu, Chief Justice of the Punjab and Haryana High Court, Justice GS Sandhawalia, Chief Justice of the Himachal Pradesh High Court, and Justice Anu Sivaraman from the Karnataka High Court. The committee’s mandate will cover not only the source and handling of the cash but also whether any foul play or deliberate framing is involved, as alleged by Justice Varma.
The entire saga began with the fire that erupted at Justice Varma’s official residence in Lutyens' Delhi at approximately 11:35 pm on March 14 — during Holi celebrations. Fire department personnel arrived swiftly to control the flames, and it was during the clearing of debris the next morning that the stash of charred cash bundles came to light. Reports suggest that the discovery included both Indian and foreign currency, intensifying suspicions and prompting swift action from the judiciary.
Justice Varma’s sudden transfer to the Allahabad High Court on Friday added fuel to the controversy. However, the Supreme Court later issued a statement clarifying that the transfer was part of a routine administrative process and not connected to the cash recovery incident. Despite the clarification, the timing of the transfer has drawn widespread public and media attention, with speculation swirling about whether the two events are linked.
As the investigation unfolds, the case continues to spark intense debate within legal and political circles. The inquiry’s outcome could have far-reaching consequences for judicial accountability, transparency, and public trust in the judiciary. The Supreme Court’s handling of the matter is now being closely watched, with many anticipating a landmark decision that could redefine how allegations of misconduct involving high-ranking judges are addressed in the future.
