Justice Varma had ‘covert or active control’ of store room, finds committee

The three-member committee that investigated allegations against Justice Yashwant Varma has found “strong evidence” that the judge and his family had “tacit or active control” of the store room where wads of cash were found. “…The misconduct found proved is serious enough to call for initiation of proceedings for removal of Justice Yashwant Varma,” the report said.

On 14 March, a fire had broken out at his official residence in Delhi and the currency was found during the firefighting operation. 

Justice Varma was then a judge of the Delhi High Court. Immediately, the Supreme Court Collegium recommended his transfer to his parent High Court at Allahabad. 

On 22 March, then Chief Justice of India Sanjiv Khanna initiated an in-house inquiry and set up a three-member committee comprising Justice Sheel Nagu, Chief Justice of the Punjab & Haryana HC, Justice G.S. Sandhawalia, Chief Justice of Himachal Pradesh HC and Justice Anu Sivaraman, judge of the Karnataka HC. The committee’s report was first made public on 19 June by the legal website The Leaflet. 

On 29 March, Justice Varma’s transfer to the Allahabad High Court was confirmed by the government. However, the Supreme Court had asked the Chief Justice of the High Court not to assign any work to him. 

Presence of cash at official residence

The committee’s investigation confirms that cash was found in the store room of Justice Varma’s official residence at 30 Tughlak Crescent, New Delhi. This finding is supported in the report by eyewitness accounts, including those of fire and police personnel and corroborated with photographs and video footage. The report records witnesses describing piles and sacks of half-burnt currency notes, mostly in Rs. 500 denomination, scattered across the store room.

Access and control over store room

In a response letter to the Chief Justice of the Delhi High Court on 17 March, Justice Varma had described the store room as a “general dumping area”. However, the committee found that it was under the “covert or active control” of Justice Varma and his family. The report notes that the sum was substantial and could not have been placed in the room without the family’s consent. 

Removal of burnt currency

The committee also found “strong inferential evidence” that the burnt currency was removed from the premises in the early hours of 15 March 2025, after fire personnel had left. The report identifies members of the domestic staff, including Justice Varma’s Private Secretary Rajinder Singh Karki, as key individuals involved in the removal of the currency. 

Inadequate explanations

In his response to the CJI of the Delhi High Court, Justice Varma had alleged conspiracy. The report notes that Justice Varma made conflicting statements before the committee. It also notes his failure to inspect the site upon returning and the contradictions in the statements made by his staff. 

Further, the report notes that Justice Varma did not file any complaint about the alleged conspiracy or fire. Nor did he secure CCTV footage or attempt to preserve the site. The report states Justice Varma failed to explain the source or removal of the currency, raising serious questions about his conduct, which it describes as “unnatural”

Recommendation for removal 

Finally, the report recommends the removal of Justice Varma from office, noting that his actions undermine public confidence in the judiciary and constitute a significant breach of the standards expected from someone holding a high constitutional office.

Justice Varma had previously refused to step down from service. Parliamentary proceedings are likely to be initiated against him as per the Judges Inquiry Act, 1968. A motion for his removal is expected to be introduced in the Monsoon Session in July.