Three-Judge Panel Submits Inquiry Report to CJI Sanjiv Khanna

A three-member committee constituted by Chief Justice of India (CJI) Sanjiv Khanna has submitted its report on the allegations surrounding Justice Yashwant Varma, a sitting judge of the Allahabad High Court, regarding the alleged discovery of cash at his residence in New Delhi following a fire incident in March 2025.

Background of the Controversy

Justice Varma became embroiled in controversy after an accidental fire broke out at his official residence on the intervening night of March 14 and 15, 2025. Subsequent reports indicated the discovery of burnt and partially burnt wads of currency notes at the scene.

A report by the Delhi High Court Chief Justice D K Upadhyay, submitted earlier to the CJI, confirmed the presence of cash-filled sacks in a storeroom near the staff quarters of the premises. It also indicated that some of the cash and debris were removed from the site on the morning following the fire.

“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,” the report noted, suggesting that the matter warranted a deeper probe.

Composition of the Inquiry Committee

On March 22, in response to the initial report and growing concerns, CJI Khanna constituted a three-member in-house committee to conduct a formal inquiry. The committee comprised:

• Justice Sheel Nagu, Chief Justice of Punjab and Haryana High Court
• Justice G S Sandhawalia, Chief Justice of Himachal Pradesh High Court
• Justice Anu Sivaraman, Judge of the Karnataka High Court

The Supreme Court’s public release confirmed that the committee submitted its findings dated May 3, 2025, to the CJI on May 4, 2025.

Transfer of Justice Varma

Amid the controversy, on March 20, the Supreme Court Collegium proposed Justice Varma’s transfer from the Delhi High Court to the Allahabad High Court. While media reports linked the transfer to the cash discovery, the top court clarified that the transfer proposal was independent and separate from the inquiry process.

Justice Varma’s Response

In his written explanation to the Delhi High Court Chief Justice, Justice Varma strongly denied the allegations and refuted any suggestion that the cash belonged to him or his family.

“No cash was ever placed in that storeroom either by me or any of my family members. The suggestion that this cash belonged to us is totally preposterous,” Justice Varma stated.

He argued that the storeroom was an outhouse, disassociated from the main residence and commonly accessed by staff, and called the narrative “incredible and incredulous.” He also criticised the media for publishing unverified claims, which, he said, had tarnished his reputation without a fair investigation.

Next Steps

The content of the committee’s report remains confidential for now, and the Supreme Court has not disclosed whether further action will be taken. Given the sensitivity and seriousness of the matter, the issue is likely to be deliberated at the highest levels of the judiciary in the coming days.