Parliamentary panel finds Justice Yashwant Varma guilty in cash-at-home row

A Parliament-appointed inquiry panel has found all three charges against former Delhi High Court Justice Yashwant Varma proved, concluding that substantial unexplained cash was found at his official residence, material evidence was not properly preserved, and his explanations about the incident were evasive and unsatisfactory.

The inquiry concerns the recovery of cash from a storeroom at Justice Varma's official residence in New Delhi. The panel said a substantial quantity of Rs 500 notes was found there. Justice Varma, who resigned as a High Court judge in April this year, failed to provide a satisfactory explanation about the source, ownership or presence of the money.

What the inquiry panel found

The committee identified three charges against Justice Varma. These involved the discovery and possession of unexplained Indian currency within official premises, failure to preserve and interference with material evidence, and furnishing evasive and misleading explanations.

The panel conducted a detailed inquiry and examined documentary and electronic material. It also recorded statements from witnesses. Justice Varma was given an opportunity to respond to the allegations and present his defence before the committee recorded its findings.

"Substantial unexplained Rs 500 denomination currency notes were found in the storeroom situated within the official residential premises at 30, Tughlaq Crescent, New Delhi. The Judge failed to furnish a satisfactory explanation regarding the presence, source or ownership thereof," it said.

"It is proved that material evidence was not secured or preserved; the evidentiary condition of the storeroom was disturbed before lawful sealing and inspection; and the later non-availability of the currency notes remains unexplained," it added.

The panel also examined Justice Varma's explanations, including his reply dated March 22, 2025 and his subsequent stand on the matter.

The committee said his explanation did not "exhibit the candour, transparency and institutional responsibility expected in the circumstances. It remained evasive and unsatisfactory when tested against the evidence of independent official witnesses and corroborative material".

Justice Varma initially denied the allegations but later suggested alternative explanations for the cash found at his residence. He suggested that the money could have been planted or that a conspiracy involving others may have taken place.

Fire at Delhi residence triggered inquiry

The controversy began on March 14, 2025, when a fire broke out at Justice Varma's official residence in Delhi. Firefighting operations led to the discovery of stacks of cash at the premises, with some reportedly measuring more than 1.5 feet in height.

The discovery sparked a major controversy and prompted then Chief Justice of India Sanjiv Khanna to order an in-house inquiry.

Justice Varma was later transferred from the Delhi High Court to the Allahabad High Court. His judicial work was also withdrawn while the inquiry was pending.