 "How huge pile of cash was found at Justice Varma’s house and why he calls it a ‘conspiracy’")
A massive controversy erupted after a large stash of cash was found following a fire at the official residence of Delhi High Court Judge Yashwant Varma.
Visuals that emerged later showed charred bundles of currency recovered from his residence after the fire incident on March 14.
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Chief Justice of India Sanjiv Khanna has set up a three-member committee of senior judges to investigate the allegations linked to the cash recovery.
On Monday, the Delhi High Court ordered the immediate suspension of **Justice Yashwant Varma’s** judicial duties until further notice.
But how was the cash found at his residence? What has Justice Varma said on the matter? And what lies ahead for him?
Here’s the full story.
What happened at Justice Varma’s residence?
A fire at Justice Varma’s residence led to the discovery of unaccounted cash, which caused a major controversy. Videos circulating online showed burnt currency notes found near his house.
Inderjeet, a sanitation worker, reported finding charred pieces of Rs 500 notes while collecting garbage nearby. He mentioned similar discoveries in the days earlier but was unsure about the fire’s origin.
In an unusual move on Saturday evening, the Supreme Court made the videos and photos public that showed sacks of burnt currency allegedly recovered from Justice Varma’s residence during the fire-fighting operation.
The footage had been shared by the Delhi Police Commissioner with the Chief Justice of the Delhi High Court. The fire broke out on March 14 while Justice Varma was away from home.
Impact Shorts
More ShortsFollowing the incident, the Supreme Court **decided to transfer** Justice Varma back to the Allahabad High Court, where he was originally appointed. However, the top court clarified that the proposal for the transfer was “independent and separate from the in-house enquiry procedure.”
On March 21, the Chief Justice of India (CJI) ordered an internal inquiry, leading the Delhi High Court Chief Justice to seek an explanation from Justice Varma. A **three-judge panel** was later formed to examine the case.
The Supreme Court then released a report prepared by the Delhi High Court Chief Justice regarding the cash recovery. The report stated that the fire occurred in a storeroom that only the house’s residents had access to.
Notably, Chief Justice Upadhyaya learned about the matter from the Delhi Police Commissioner on March 15 at around 4:50 pm. He later visited the scene with the High Court Registrar and met Justice Varma before compiling his findings.
#WATCH | Delhi: Burnt debris seen near the residence of Delhi High Court judge Justice Yashwant Varma. pic.twitter.com/PTI4vCVXY5
— ANI (@ANI) March 23, 2025
How Justice Yashwant Varma defended himself
Justice Varma has firmly denied any wrongdoing, calling the allegations against him an attempt to tarnish his reputation.
“I would beseech you to bear in consideration that no currency was recovered from the premises that we actually occupy and use as a family,” he stated in his official response to Chief Justice Upadhyaya.
He further added, “After the fire was doused and when they went back to the scene of the incident, they saw no cash or currency on site.”
“I have made my own enquiries from the staff present who have also stated that there was no ‘removal’ of currency which was allegedly found at the site or removed from the premises. The only thing which was cleared was debris and what they considered to be salvageable. That is still present in the house and can be seen kept apart in one part of the residence,” his letter read.
Justice Varma stated that the entire episode appeared to be a deliberate conspiracy to “ frame and malign” him.
#WATCH | Delhi: Burnt debris seen near the residence of Delhi High Court judge Justice Yashwant Varma. pic.twitter.com/iwpMIcJYi8
— ANI (@ANI) March 23, 2025
Chief Justice of India **Sanjiv Khanna** ordered Chief Justice Upadhyaya to seek clarifications from Justice Varma, asking, “How does he account for the presence of money/cash in the room located in his premises… Explain the source of money/cash which was found in the said room,” and “who is the person who had removed the burnt money/cash from the room in the morning of March 15?”
In his response, Justice Varma stated that the storeroom in question was used for storing various household and official materials, including old furniture, carpets, bottles, crockery, mattresses, garden tools, and CPWD supplies. “This room is unlocked and accessible both from the official front gate as well as the backdoor of the staff quarters. It is disconnected from the main residence and is surely not a room in my house as has been portrayed and suggested in the…. news reports.”
Addressing the viral video of the incident, Justice Varma questioned why the cash, if it was indeed present, had not been formally seized. “Assuming without admitting that the video was taken immediately at the time of the incident at the site, none of it appears to have been recovered or seized.”
He said that when Chief Justice Upadhyaya first showed him the video, he was “totally shocked to see the contents.” He added that it “depicted something which was not found on site as I had seen it.”
Justice Varma further said that he “would be grateful if an enquiry is made with respect to my functioning as a judge”.
What the inquiry report on Justice Varma revealed
A report submitted by Chief Justice Upadhyaya and made public by the Supreme Court has revealed that the case requires a more detailed investigation.
According to **the report** , four to five sacks of burnt currency notes were found in an outhouse being used as a storeroom, raising serious concerns about the origin of the cash discovered at Justice Yashwant Varma’s residence.
The report, which was released late on March 22, contained photos and videos from the firefighting operation that followed a short circuit-induced blaze.
#BREAKING Video shared by Delhi Police Commissioner regarding the fire at Justice Yashwant Varma’s house, when cash currencies were discovered. pic.twitter.com/FEU50vHwME
— Live Law (@LiveLawIndia) March 22, 2025
The fire was first reported through a PCR call made by Justice Varma’s personal secretary. No signs of forced entry into the storeroom were detected. The space was used to store household items and was accessible to domestic staff, gardeners, and CPWD workers.
As per The Times of India, the report mentioned that debris and half-burnt objects were removed from the storeroom on the morning of March 15.
The Supreme Court also made public Justice Varma’s response, in which he denied the allegations, stating that the situation appeared to be an attempt to frame him.
He further clarified that the room where the fire broke out and where the cash was reportedly discovered was an outhouse and not part of his family’s main residence.
In a major development later, the Supreme Court directed Justice Varma to retain all data and messages on his phone and requested security records from the past six months.
On Monday, the Delhi High Court issued an order immediately withdrawing Justice Varma’s judicial responsibilities.
A note published on the court’s website stated, “In view of the recent events, the judicial work from hon’ble Mr. Justice Yashwant Varma is withdrawn with immediate effect, till further orders.”
With inputs from agencies
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