Controversy erupts in India as wads of cash found at High Court judge’s home

Justice Yashwant Varma dismisses allegations of wrongdoing, calling them calculated effort to malign his reputation

A major judicial controversy has erupted in India after an inquiry report revealed a large sum of cash discovered at the official residence of a high court judge.

The report, made public on Saturday by the Supreme Court of India, includes images of charred bundles of currency allegedly found after a fire broke out at the home of Delhi High Court judge Yashwant Varma on 14 March.

Delhi High Court chief justice Devendra Kumar Upadhyaya has urged the chief justice of India (CJI), Sanjiv Khanna, to initiate a comprehensive investigation, citing a report from the city’s police commissioner.

The 25-page document records Justice Varma’s firm denial of any wrongdoing, dismissing the allegations as a calculated attempt to tarnish his reputation.

“At the cost of repetition, I unequivocally state that neither I nor any of my family members had stored or kept any cash or currency in that storeroom at any point of time,” he said in the statement.

“Our cash withdrawals, made from time to time, are all documented and always through regular banking channels, the use of UPI applications and cards. Insofar as the allegation of the recovery of cash, I once again make it clear that no one from my house ever reported seeing any currency in burnt form in the room,” said Justice Varma.

He argued that multiple individuals, including household staff, gardeners, and Central Public Works Department personnel, had access to the storeroom where the cash was found.

However, Justice Upadhyaya contradicted this claim, asserting that preliminary findings suggest no unauthorised access beyond those residing at the property or authorised personnel.

“Based on the evidence presented and Justice Varma’s responses, I am of the prima facie opinion that this matter requires a deeper probe,” he stated in the report.

The case gained momentum when Delhi Police reported that a security guard at Justice Varma’s residence had witnessed debris and partially burned items being removed from the affected room on the morning of 15 March.

Chief Justice Khanna directly questioned Justice Varma about the origins of the cash and how it ended up at his residence. In response, Justice Varma categorically denied any knowledge or involvement, calling the allegations “totally preposterous”.

Firefighter working to douse the fire at Justice Yashwant Varma's official residence in Delhi as cash recovered (Supreme Court of India)

Justice Varma said he and his wife were in Madhya Pradesh that day and only his daughter and elderly mother were home when the fire broke out. He said he returned to Delhi with his wife on 15 March.

“When the fire broke out around midnight, the fire service was alerted by my daughter and my private secretary and whose calls would be duly recorded (sic).

“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,” the judge said.

The Supreme Court has since formed a three-member panel to conduct an internal inquiry into the matter. 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 of the Karnataka High Court. Meanwhile, Justice Varma has been temporarily relieved of his judicial duties while the investigation proceeds.

The fire that led to the discovery occurred late at night on 14 March, coinciding with the Hindu festival of Holi. Firefighters responding to the emergency extinguished the blaze before reportedly uncovering stacks of charred currency. As part of the Supreme Court’s disclosure, images of the cash were uploaded to its website, intensifying public scrutiny of the case.

Justice Varma, upon viewing the images presented in the report, expressed shock, claiming they differed from what he had seen at the site.

“It was during our meeting at the High Court Guesthouse that I was first shown the video and other photographs which had been shared with you (Chief Justice DK Upadhyaya) by the Commissioner of Police.

“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,” said Justice Varma, according to the statement noted in the report.

In response to the preliminary findings, Chief Justice Khanna has requested access to Justice Varma’s call records and digital communications from the past six months to further the investigation.

“Justice Yashwant Varma should be advised not to alter or delete any data, messages, or conversations from his mobile phone(s),” he directed in correspondence with the Delhi High Court chief justice.

Adding to the intrigue, Justice Varma was transferred to the Allahabad High Court on Friday, fueling speculation about the case. However, the Supreme Court has clarified that his transfer was unrelated to the cash discovery.