In an unprecedented move, the Supreme Court late on Saturday night uploaded on its website an in-house inquiry report (external link), including photos and videos, into the alleged discovery of a huge stash of cash at the residence of Delhi high court judge Yashwant Varma.
As recommended in the 25-page report, Chief Justice of India Sanjiv Khanna constituted an in-house committee to conduct an inquiry and asked Delhi high court Chief Justice D K Upadhyaya not to assign any judicial work to Justice Varma.
The report contains photos and videos of the cash allegedly discovered at a storeroom at Justice Varma's house during a firefighting operation on the night of Holi, March 14. It also contains his response.
Justice Varma has 'unequivocally' stated that no cash was ever placed in the storeroom 'either by me or any of my family members and (I) strongly denounce the suggestion that the alleged cash belonged to us'.
He said the allegations of cash discovery at his residence clearly appeared to be a conspiracy to frame and malign him.
"The very idea or suggestion that this cash was kept or stored by us is totally preposterous," he said.
The inquiry report submitted by Delhi high court Chief Justice D K Upadhyaya also contained material with regard to official communication which says four to five semi-burnt stacks of Indian currency were found.
"On examining the incident reported, the material available and the response of Justice Yashwant Varma, what I find is that the Commissioner of Police in his report dated Marg 16, 2025 has reported that as per the guard posted at the residence of Justice Yashwant Varma, the debris and other partially burnt articles were removed from the room where the fire had broken out in the morning of March 15, 2025.
"The enquiry conducted by me, prima facie, does not reveal 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.
"Accordingly, I am of the prima facie opinion that the entire matter warrants a deeper probe," Justice Upadhyaya said in his report dated March 21, and made public Saturday night.
The three-member inquiry committee formed by the SC earlier in the day consists of Justice Sheel Nagu (Chief Justice of the high court of Punjab and Haryana), Justice G S Sandhawalia (Chief Justice of the high court of Himachal Pradesh) and Anu Sivaraman (judge of the high court of Karnataka).
"The Chief Justice of the high court of Delhi for the time being has been asked not to assign any judicial work to Mr Justice Yashwant Varma," a statement from the top court said earlier on Saturday.
The purported discovery of the huge stash of cash happened after a fire broke out at Justice Varma's Lutyens' Delhi residence at around 11:35 on the night of Holi on March 14.
In a statement on Friday, the Supreme Court said the Delhi high court chief justice had initiated an in-house inquiry against Justice Varma and separately, there was a proposal to transfer the judge to the Allahabad high court.
"There is misinformation and rumours are being spread with regard to the incident at the residence of Justice Yashwant Varma," the statement said.
Upon receiving the information, the apex court said Justice Upadhyaya "commenced the in-house enquiry procedure, collecting evidence and information".
Justice Upadhyaya was stated to have commenced the enquiry prior to a meeting of the apex court collegium on March 20.
The Supreme Court had said the proposal for transferring Justice Varma was examined by the apex court collegium comprising the CJI and the four senior most judges on March 20 and thereafter, letters were shot off to the consultee judges of the top court and the chief justices of the high courts concerned, besides Justice Varma.
"Responses received will be examined and, thereupon, the collegium will pass a resolution," the court said.
The main opposition Congress on Saturday said the incident has raised serious concerns and urged the Supreme Court to take strong measures to uphold people's trust in the judiciary. It also said the incident should not give a handle to the executive to control judicial appointments in higher courts.
Congress general secretaries K C Venugopal and Randeep Surjewala said the incident has shocked the nation, including the legal fraternity.
Venugopal said the country is looking towards the Supreme Court for strong measures, while Surjewala said the top court must find answers on judicial accountability.
The Delhi high court website shows Justice Varma was enrolled as an advocate on August 8, 1992. He was appointed as an additional judge of the Allahabad high court on October 13, 2014.
He took oath as a permanent judge of the Allahabad high court on February 1, 2016, before being appointed as a judge of the Delhi high court on October 11, 2021.
He is currently heading a division bench dealing with cases of sales tax, the Goods and Services Tax (GST), company appeals and other appeals on the original side.
The top court has an in-house inquiry mechanism in place to deal with allegations against judges of the constitutional courts.
The procedure entails the CJI, after a preliminary inquiry, forming a committee of three Supreme Court judges to enquire into the matter after seeking the response of the judge concerned. Based on the report of the panel, further action could be taken.
A judge of a constitutional court can only be removed from office through an impeachment motion passed by Parliament.
Judge Clarifies: No cash found at home
Delhi high court judge Yashwant Varma has strongly denounced the allegations in the currency recovery row at his official residence here and said no cash was ever placed in the storeroom either by him or any of my family members.
In his response submitted to Delhi high court Chief Justice D K Upadhyaya, Justice Varma said the allegations of cash discovery at his residence clearly appeared to be a conspiracy to frame and malign him.
Justice Varma filed his reply after the Delhi high court Chief Justice sought his response pursuant to an in-house probe initiated by Chief Justice Sanjiv Khanna.
He also said that the media should have conducted some enquiry before making allegations and defaming him. Justice Varma said he was not aware of any money or cash lying in the outhouse storeroom.
"Neither I nor any of my family members had any knowledge of cash nor does it have any bearing or relation with me or my family. No such cash or currency was shown to my family members or staff who were present on that fateful night.
"I also strongly deny and outrightly reject the insinuation if made, that we removed currency from the storeroom. As stated above, we were neither shown nor handed over any sacks of burnt currency. In fact, and as stated above, the limited debris which was sought to be salvaged continues to exist in one part of the residence," the judge said.
Narrating the incident, Justice Varma said a fire broke out in the storeroom situated near the staff quarters of his official residence on the intervening night of March 14-15, 2025.
He said this room was generally utilised by all and sundry to store articles such as unused furniture, bottles, crockery, mattresses, used carpets, old speakers, garden implements as well as CPWD material.
"This room is unlocked and accessible both from the official front gate as well as the backdoor of the staff quarters. It is disconnected from the main residence and is surely not a room in my house as has been portrayed and suggested in the article which appeared in The Times of India and certain other news reports.
"On that date, my wife and I were not in Delhi and travelling in Madhya Pradesh and it was only my daughter and aged mother who were at home. I returned to Delhi only on the evening of March 15, 2025, from Bhopal travelling on an IndiGo flight with my wife," he said.
He shared that when the fire broke out around midnight, the Delhi Fire Service was alerted by his daughter and private secretary whose calls would be duly recorded.
"During the exercise to douse the fire, all staff and the members of my household were asked to move away from the scene of the incident in view of safety concerns. After the fire was doused and when they went back to the scene of the incident, they saw no cash or currency on site.
"I state unequivocally that no cash was ever placed in that storeroom either by me or any of my family members and strongly denounce the suggestion that the alleged cash belonged to us. The very idea or suggestion that this cash was kept or stored by us is totally preposterous," Justice Varma said.
He said suggestions 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.
"It is a room which is completely disassociated from my living areas and a boundary wall demarcates my living area from that outhouse. I only wish the media had conducted some enquiry before I came to be indicted and defamed in the press," the judge said.
The purported discovery of a huge stash of cash happened following a fire at Justice Varma's Lutyens' Delhi residence at around 11.35 pm on the night of Holi on March 14, prompting the fire department personnel to rush to the spot and douse the flames.
In a statement on Friday, the Supreme Court said the Delhi high court chief justice had initiated an in-house inquiry against Justice Varma; separately, there was a proposal to transfer the judge to the Allahabad high court.
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