Cash-discovery row: SC collegium confirms transfer of Justice Varma

PTI, NEW DELHI, MARCH 24, 2025 :  The Supreme Court collegium on Monday confirmed the transfer of Delhi High Court's Justice Yashwant Varma, who is facing an inquiry over the alleged discovery of a huge cash stash at his official residence and from whom judicial work was withdrawn. His transfer to his parent Allahabad High Court was recommended, and the decision was made public in a resolution uploaded on the apex court's website.

"The Supreme Court Collegium in its meetings held on March 20 and 24, 2025, has recommended the repatriation of Justice Yashwant Varma, Judge, High Court of Delhi, to the High Court of Judicature at Allahabad," the resolution stated. On March 21, the Supreme Court had said that Delhi High Court Chief Justice D.K. Upadhyaya initiated an in-house inquiry against Justice Varma, and there was a separate proposal to transfer him.

"There is misinformation, and rumors are being spread regarding the incident at the residence of Justice Yashwant Varma," the SC statement added. Upon receiving this information, the apex court said that Chief Justice Upadhyaya "commenced the in-house inquiry procedure, collecting evidence and information." It was reported that Justice Upadhyaya began the inquiry before the meeting of the apex court collegium on March 20. Justice Varma's proposed transfer could come into effect after the Centre accepts the recommendation.

The alleged cash discovery occurred following a fire at Varma's Lutyens Delhi residence at around 11:35 pm on March 14, prompting fire officials to rush to the spot and extinguish it. The apex court collegium, headed by CJI Sanjiv Khanna, and the Delhi High Court subsequently issued a series of directives, including the withdrawal of judicial work from Justice Varma on Monday. The CJI constituted an in-house committee to conduct an inquiry and asked Delhi HC Chief Justice D.K. Upadhyaya not to assign any judicial work to Justice Varma.

In an unprecedented move, the apex court late on March 22 uploaded on its website an in-house inquiry report, including photos and videos, into the alleged discovery of a huge stash of cash at Justice Varma's residence. The report contains photos and videos of the cash allegedly discovered in a storeroom at Justice Varma's house during a firefighting operation on the night of Holi, March 14, aside from his response. Justice Varma has "unequivocally" denied any cash being placed in the storeroom either by him or any of his family members, while "strongly denouncing the suggestion that the alleged cash belonged" to them.

The judge stated that the allegations of cash discovery from his official residence clearly appeared to be a conspiracy to frame and malign him. "The very idea or suggestion that this cash was kept or stored by us is totally preposterous," he said.

The inquiry report submitted by Chief Justice Upadhyaya also contained material regarding official communication, which states "four to five semi-burnt stacks of Indian currency" were found. "On examining the incident reported, the material available, and the response of Justice Yashwant Varma, what I find is that the Commissioner of Police in his report dated March 16, 2025, has reported that as per the guard posted at the residence of Justice Yashwant Varma, the debris and other partially burnt articles were removed from the room where the fire had broken out in the morning of March 15, 2025," the report, dated March 21 and made public the next day, stated.

The report continued: "The enquiry conducted by me, prima facie, does not reveal the 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." "I am of the prima facie opinion that the entire matter warrants a deeper probe," Justice Upadhyaya added.