Over Rs 3 crore in burnt currency was found inside Justice Yashwant Varma’s home. A full official probe reveals shocking secrets, cover-up attempts, and suspicious financial gaps in this explosive judiciary scandal.
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NEW DELHI: In one of the most serious cases in recent Indian judicial history, a probe committee formed under Supreme Court guidelines has submitted a shocking and highly detailed report on the discovery of burnt currency notes worth crores at the official residence of Delhi High Court Judge, Justice Yashwant Varma.
The confidential report was prepared by a 3-member inquiry panel headed by a retired High Court judge, forensic experts, and administrative auditors.
ALSO READ: Notable Judgments by Justice Yashwant Varma: Delhi High Court
The incident, as detailed in the report, raises major concerns about judicial accountability, ethics, and possible corruption at the highest levels of the judiciary.
THE DISCOVERY – BURNED CASH FOUND IN FIREPLACE
According to the report, the incident began when cleaning staff raised a complaint about a strange burning smell and ashes inside the judge’s bungalow.
Acting upon an internal administrative alert, a spot inspection was carried out on 27 February 2025, during which fireplace ash and drawer compartments were thoroughly examined.
The report mentions:
“Multiple bundles of partially burnt Indian currency notes, mostly ₹500 and ₹2000 denominations, stacked within the fireplace chamber and ashtray”
-were discovered.
Further examination and cash recovery operation by forensic experts revealed:
“The physical condition of the notes suggested deliberate burning rather than accidental damage.”
“The total estimated value of the unburnt and partially burnt notes collected is assessed at ₹3.4 crore, subject to verification by forensic analysis.”
This discovery immediately triggered alarm bells due to the source, amount, and method of disposal—leading to the establishment of a formal inquiry committee.
JUSTICE VARMA’S EXPLANATION
The Committee questioned Justice Varma directly about the findings. He responded with denial and claimed ignorance, saying:
“The fireplace had not been cleaned for several months and he was unaware of the contents.”
He also stated that:
“He rarely used the drawing room where the fireplace is located and expressed ignorance regarding the presence of any currency.”
However, the panel noticed contradictions between Justice Varma’s statements and testimonies given by household staff.
The report critically notes:
“His statement that the fireplace was ‘non-functional’ and hence unused contradicts statements made by household staff who confirmed it was last used in January during a gathering.”
In fact, a key testimony revealed:
“Bundles were kept in the drawer near the fireplace a day before the fire was lit.”
This implies a premeditated effort to hide or destroy the cash rather than a random event.
STAFF STATEMENTS AND INSIDER SUSPICIONS
Domestic staff were cross-questioned and gave surprisingly direct insights. One member revealed that instructions were given to not touch or clean the fireplace in the week prior. Others said that the fireplace was recently used even though Justice Varma had claimed otherwise.
The report sharply concludes:
“The scale of the currency involved, its concealment, and its state of partial destruction reflect premeditated intent rather than accidental oversight.”
In short, the committee believes the attempt was to destroy illegal money quietly.
FINANCIAL INVESTIGATION: BANK RECORDS & UNDECLARED ASSETS
Further analysis of Justice Varma’s financial records, bank transactions, and asset filings revealed additional problems. The committee writes:
“Preliminary checks reveal inconsistencies in recent bank transactions and asset disclosures that merit further investigation.”
It adds that several large deposits and foreign wire transfers were not properly declared. These findings now raise suspicion of money laundering, benami properties, and possible bribery links in court dealings.
PANEL RECOMMENDATIONS: CRIMINAL ACTION AND SUPREME COURT INTERVENTION
In its final and strongest remarks, the panel gives the following recommendations:
“The matter requires immediate referral to a special investigation team (SIT) for criminal and forensic inquiry.”
“The findings of this committee must be shared with the Chief Justice of India and the President’s Secretariat without delay.”
The panel has also demanded a complete freeze on all personal and family bank accounts linked to Justice Varma and a vigilance audit of all his past judgments involving high-stakes litigants over the last 5 years.
WHY THIS MATTERS
This is not just about burnt notes or financial fraud. This is a huge blow to the public trust in Indian courts. When people look up to judges for fairness and justice, such actions bring shame to the judiciary.
The public now wants answers—
- How could this happen?
- Who else was involved?
- And will the system punish its own?
Justice Varma has not resigned yet, and the Supreme Court has not made any public comment on the matter. But pressure is mounting on the judiciary to act fast.
WHAT HAPPENS NEXT?
- A special bench of the Supreme Court may be formed to take cognizance.
- The President of India may consider suspension or removal under Article 124(4).
- An FIR and SIT probe are expected under Prevention of Corruption Act.
- Forensic audit and digital tracking of burnt note serial numbers is underway.
While the committee report does not make any direct criminal accusations, its wording clearly points to serious violations of law, ethics, and fiduciary trust. Here’s a breakdown of what legal pathways now exist to take action against Justice Varma:
1. Violation of Prevention of Corruption Act (1988)
Finding undisclosed, unaccounted cash inside the residence of a High Court judge constitutes prima facie evidence of:
- Possession of disproportionate assets
- Attempt to destroy evidence (Section 201 IPC)
- Misuse of public position for personal enrichment
The committee observes:
“The scale of the currency involved, its concealment, and its state of partial destruction reflect premeditated intent rather than accidental oversight.”
This sentence alone is enough for the CBI or Enforcement Directorate (ED) to file an FIR under Section 13(1)(e) of the PC Act.
2. Judicial Misconduct & Impeachment Proceedings
While judges of the High Court enjoy constitutional protection under Article 217, they can be removed under Article 124(4) on grounds of proven misbehavior.
“Given the senior constitutional position held by Justice Varma, the discovery of unaccounted currency in such a compromised form raises grave concerns over financial propriety and judicial ethics.”
This wording supports potential removal proceedings via Parliament, though this path is politically sensitive and rarely used.
3. Money Laundering & Benami Transactions
The mention of suspicious banking activity and asset disclosure gaps opens the door to action under:
- The Prevention of Money Laundering Act (PMLA)
- The Benami Transactions (Prohibition) Act
As the report mentions:
“Preliminary checks reveal inconsistencies in recent bank transactions and asset disclosures that merit further investigation.”
This language suggests a strong likelihood of money laundering, especially if further inquiry links the cash to external entities like litigants or fixers.
4. Obstruction of Justice
If proven that evidence was intentionally destroyed, it would be a violation of:
- Section 204 IPC – Destruction of documents/evidence
- Section 120B – Criminal conspiracy
Since the report says:
“Bundles were kept in the drawer near the fireplace a day before the fire was lit.”
this could indicate willful conspiracy to destroy or hide assets to escape legal scrutiny.
SYSTEMIC LOOPHOLES THAT ALLOWED THIS TO HAPPEN
One of the most disturbing aspects of this scandal is how easily such serious misconduct was hidden inside the home of a judge.
This points to deep flaws in the current system:
No Asset Audits for Judges
Unlike public servants, judges are not subject to yearly, mandatory public asset verification.
No Residential Oversight
There are no regular inspections of judicial residences, even when complaints are received.
Internal Complaint Handling
Complaints against judges often remain internal, and even whistleblowers fear retaliation due to lack of legal protection.
Influence on Staff Statements
Household staff might be under pressure. As noted in the report:
“His statement that the fireplace was ‘non-functional’ and hence unused contradicts statements made by household staff who confirmed it was last used in January during a gathering.”
This shows possible intimidation or manipulation—another reason why outside agencies must be involved.
WHAT INDIA’S JUDICIARY MUST FIX NOW
This case is not just about one man’s wrongdoings—it reflects a structural weakness. If the justice system protects the corrupt among its own, public faith in courts will collapse.
Here are the urgent reforms needed:
- Judges must declare assets publicly every year, like elected officials.
- A Judicial Complaints Authority must be formed for citizens to report misconduct.
- Residences of judges should be subject to random, independent audit.
- Strong whistleblower protection laws need to cover judicial staff too.
NOTE: The Report Was Shared By Maneesh Chhibber With Media
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