In Delhi Burnt Cash Controversy, “Mahatma Gandhi me aag lag rahi hai” became the shocking highlight as a judicial panel found serious misconduct by Justice Yashwant Varma, recommending his removal after bundles of burnt notes were found.
A high-level committee of three judges has preliminarily found Justice Yashwant Varma responsible for misconduct following the discovery of burnt cash at his official residence in Delhi during a fire on March 14.
These serious allegations, along with the committee’s findings, could potentially initiate impeachment proceedings against him during the upcoming Monsoon Session of Parliament.
The three-member panel included prominent judges: Justice Sheel Nagu (Chief Justice of the Punjab & Haryana High Court), Justice G S Sandhawalia (Chief Justice of the Himachal Pradesh High Court), and Justice Anu Sivaraman (Judge of the Karnataka High Court).
They compiled a comprehensive 64-page report on the incident.
The judicial panel criticized Justice Yashwant Varma, currently serving at the Allahabad High Court, for failing to file a police report or notify the judiciary about the substantial amounts of burnt currency notes discovered during his absence from his official residence in the national capital. The panel described his silence and behavior as unnatural, deeming the allegations serious enough to recommend his removal to the Chief Justice of India.
The inquiry committee, established by former Chief Justice Sanjiv Khanna, detailed important evidence supporting the claims. Following the committee’s findings, the Chief Justice of India forwarded the report to the President of India and the Prime Minister’s Office for further action.
The committee carefully reviewed eyewitness testimonies and visual evidence confirming a large cache of cash at his home. More concerning than the money itself was Justice Varma’s total lack of action, which raised serious questions about propriety, accountability, and the trustworthiness of someone expected to uphold the law.
The panel heard from 55 witnesses, including Justice Varma’s daughter, and found consistent reports from fire brigade and police personnel. Videos and photographs provided visual evidence of a significant pile of Rs 500 notes scattered on the floor of a storeroom in his residence, which the panel stated could not be overlooked.
According to a report,
“Several eyewitnesses saw heaps of currency notes, some even half-burnt inside Justice Yashwant Varma’s Delhi residence. Yet, he neither filed a police complaint nor informed the judiciary. A Supreme Court-appointed inquiry panel, which looked into these allegations, called his silence and behaviour unnatural, and found the charges serious enough to recommend his removal.”
At least ten witnesses interviewed by the panel confirmed seeing burnt or partially burnt currency notes. One witness recounted,
“As I entered, I noticed that on the right hand side and in front, there was large pile of cash only of Rs 500 denomination lying on the floor. I am not sure whether any such notes of Rs 500 denomination were there on the ledge or not. I was shocked and surprised such large amount of cash which was strewn on the floor, which I saw for the first time in my life.”
The committee also examined the questionable actions of Justice Varma’s private secretary, Rajinder Singh Karki, and his daughter, Diya Varma, suggesting an attempt to destroy evidence or clean the scene post-fire.
Witnesses claimed that Karki instructed fire personnel to omit any mention of the currency notes in their report and oversaw the cleaning of the room the next day. Although he denied these allegations, multiple witness accounts and electronic evidence contradicted his statements, indicating a deliberate effort to conceal the events.
The report concluded,
“Keeping in view the direct and electronic evidence record, this Committee is firmly of the view that there is sufficient substance in the allegations raised in the letter of Hon’ble the Chief Justice of India dated 22.03.2025 and the misconduct found proved is serious enough to call for initiation of proceedings for removal of Justice Yashwant Varma, Judge of the Allahabad High Court,”
The panel also noted that the judge, who was in Bhopal during the fire incident, did not visit the storehouse immediately upon his return.
The report mentioned that at least two CRPF personnel on guard duty at the residence informed the panel that the “door of the store room was locked at the time of the fire and that they had assisted in breaking open the lock.”
A video recorded by a firefighter, which was made public by the Supreme Court of India, included a remark referring to the burning currency as “Mahatma Gandhi me aag lag rahi hai.”
Quoting the Restatement of Values of Judicial Life, a code adopted by the Supreme Court in its Full Court meeting on May 7, 1997, the panel emphasized that members of the higher judiciary are held to exceptionally high standards. It asserted that integrity is not merely desirable but the most essential and non-negotiable qualification for anyone in judicial office.
The committee report stated,
“The very existence of judicial office is founded upon the trust of the citizens at large. The quality and quantity of this trust is directly relatable to the behaviour, conduct and performance demonstrated by the judge, not only inside but also outside the courtroom. Any deficiency in this regard erodes public trust which ought to be viewed stringently,”
In his comprehensive 101-page response to the inquiry panel, Justice Yashwant Varma strongly contested the framing of issues articulated by the then Chief Justice of India in a letter dated March 22.
He argued that the process unfairly presupposed his guilt, placing upon him the challenging task of disproving an assumption that was already considered prima facie true.
Justice Varma argued that there was no substantial or incriminating evidence on record and asserted that it was the panel’s responsibility to first verify the facts of each allegation.
He contended,
“Only when the committee finds prima facie substance in the charges, should I be required to respond not the other way around.”
The panel summarized his stance as an objection to the reverse burden of proof being imposed on him, particularly regarding the alleged recovery of currency from his storeroom.
Now returned to his parent High Court in Allahabad, where he has not been assigned any judicial duties, Justice Varma maintains his innocence. He has neither resigned nor chosen voluntary retirement and has consistently described the proceedings against him as fundamentally unjust.
The Committee reviewed numerous statements from first responders, including fire and police officials, and found them to be consistent. While the report does not detail each witness statement verbatim, it affirms its reliance on such material and contemporaneous documentation, including images and communications from the time.
The Committee concluded,
“The inquiry has revealed the fact that bundles of high denomination Indian currency notes, some of which were partially or fully burnt, were present at the site of the fire on the night of 14.03.2025 and were witnessed and documented by uniformed personnel during fire-fighting operations. The Committee does not find the explanation provided by Hon’ble Justice Varma to be satisfactory or supported by any rebuttal evidence, either oral or documentary…In view of the above, the Committee is of the unanimous view that the matter be placed before the Hon’ble Chief Justice of India for communication to the President and the Prime Minister of India for such further action as may be deemed appropriate under the Constitution.”
Following these findings, and after Justice Varma consented to the transfer on March 20, 2025, the Supreme Court Collegium recommended his repatriation to the Allahabad High Court. He is currently assigned there without any judicial duties.
Under the internal procedure, when a judge does not resign after adverse findings, the matter is referred to the executive for potential initiation of proceedings under Article 124(4) of the Constitution.
A fire broke out at Justice Varma’s home on the evening of March 14, during which unaccounted cash was inadvertently found by firefighters.
A video depicting the recovery of the burnt cash was reportedly shared by the Delhi Police Commissioner with the Chief Justice of the High Court.
At the time of the incident, Justice Varma and his wife were traveling in Madhya Pradesh, leaving only their daughter and elderly mother at home. On March 21, the Chief Justice of India (CJI) initiated an internal investigation into the allegations, appointing a three-member committee to carry out the inquiry.
NOTE: The Report Was Shared By Maneesh Chhibber With Media
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