Delhi HC Justice Yashwant Varma relieved of judicial duties amid cash recovery controversy

Delhi High Court Chief Justice Devendra Kumar Upadhyaya has withdrawn judicial work from Justice Yashwant Varma with immediate effect following the discovery of a large amount of cash at his official residence. The decision follows Chief Justice of India (CJI) Sanjiv Khanna’s recommendation and the formation of a three-member inquiry committee to investigate the matter.

The controversy began after a fire broke out at Justice Varma’s residence on Tughlak Road on March 14 at around 11:35 p.m. Firefighters responding to the incident reportedly found stacks of cash, some of which were charred. Justice Varma and his wife were in Bhopal at the time. Following the discovery, Chief Justice Upadhyaya submitted a report to the CJI, who then recommended an in-house inquiry and immediate withdrawal of judicial duties. A Delhi High Court circular confirmed that Justice Varma’s cases have been reassigned to Justices Subramonium Prasad and Harish Vaidyanathan Shankar.

The Supreme Court Collegium unanimously recommended transferring Justice Varma to the Allahabad High Court, his parent court, on March 20. However, during deliberations, some members argued that a mere transfer was insufficient and called for a formal investigation. The inquiry committee, comprising Chief Justices Sheel Nagu (Punjab & Haryana HC), GS Sandhawalia (Himachal Pradesh HC), and Karnataka HC Judge Anu Sivaraman, has been assigned to probe the allegations.

The Allahabad High Court Bar Association has opposed Justice Varma’s transfer, questioning whether their court was being used as a “dumping ground.” Meanwhile, Rajya Sabha Chairman Jagdeep Dhankhar has stated that he will explore mechanisms for structured discussions on judicial accountability, responding to calls from some parliamentarians for greater transparency in judicial appointments and conduct.

Justice Varma has denied the allegations, claiming that the accusations are part of a conspiracy. He stated that the fire occurred in an outhouse, which is used for storing disused household items and is separate from his living quarters. “It is a room which is completely disassociated from my living areas, and a boundary wall demarcates my living area from that outhouse,” he said in response to the inquiry. Further developments in the case are expected as the inquiry proceeds.