Cash discovery row: Large piles of currency notes found in Justice Varma’s gutted storeroom, says Inquiry committee report

The report submitted reveals that the currency notes found during the fire-dousing process are “highly suspicious items, not of small value” and could not have been placed in the storeroom without the consent of Justice Varma or his family. File | Photo Credit: PTI

An in-house inquiry committee constituted by the Chief Justice of India concluded that cash was found in the gutted storeroom at the official residential premises of High Court judge, Justice Yashwant Varma, and police and fire authorities were “slipshod” in not lodging an FIR or preparing a seizure memo recording exactly what they came across at the scene of the fire on March 14-15.

The committee said the “higher police officials” had sought to explain their inaction by pointing to reasons like the “sensitivity of the issue” and the absence of Justice Varma at his residence at the time of incident. Justice Varma and his wife were in Bhopal on a holiday trip on the night of the fire.

The report of the three-judge committee of May 3 was shared in the public domain by the legal website ‘The Leaflet’ on Wednesday (June 19, 2025).

The report had been confidentially forwarded to the President and the Prime Minister by Chief Justice of India Sanjiv Khanna, days before he retired on May 13, after Justice Varma refused to voluntarily resign from office.

A removal motion against Justice Varma is expected to be introduced in the Parliament during the Monsoon Session scheduled in July.

The report of the committee, comprising Justices Sheel Nagu, GS Sandhawalia and Anu Sivaraman, concluded that Justice Varma and his family members were in “covert or active control” of access into the storeroom where stacks of half-burnt cash was found.

“The storeroom, which was used for keeping unused domestic items and liquor cabinets, was under the physical control of Justice Varma and his family members and, therefore, any suspicious item found in the storeroom will have to be accounted for by Justice Varma or his family members,” the report said.

It noted that the currency notes “seen and found during the process of dousing of fire” were “highly suspicious items” and not of a small value. They could not have been placed in the storeroom without the tacit or active consent of Justice Varma or his family, the report submitted.

The inquiry committee refused to accept the version of the judge that he was a target of a conspiracy. It said it would be “well-nigh impossible” to “plant” currency in a high security residential premises of a sitting judge.

The report asked why Justice Varma, if what happened to him was indeed a “conspiracy”, accepted his transfer from Delhi Allahabad without demur or not filed a complaint with the police or the Chief Justice of India or even the Chief Justice of the Delhi High Court.

The inquiry panel said “strong inferential evidence” established that the burnt currency was removed by Justice Varma’s trusted staff from the storeroom during the early hours of March 15.

The committee expressed its strong view that the “misconduct” of Justice Varma was “serious enough” to call for initiation of proceedings for his removal.

“In the absence of any plausible explanation coming from Justice Varma or his family members or for that matter any other witness, this committee is left with no option, but yo hold that the trust reposed in him was belief by him by allowing highly suspicious material in the shape of piles if currency notes to be stashed in the storeroom. Whether this was done with the tacit or explicit consent of Justice Varma or his family is of little significance in the face of the larger concept of breach of public trust and probity expected of the high constitutional office held by Justice Varma,” the report said.

Published - June 19, 2025 02:03 pm IST