Chief Justice of India (CJI) Sanjiv Khanna has initiated an initial inquiry against Delhi high court judge Yashwant Varma over the discovery of large amounts of cash at the latter’s residence in Delhi last week. According to people in the know of the developments, CJI Khanna has sought a report from Delhi high court chief justice Devendra Kumar Upadhyaya before finalising the next course of action.
According to one of the persons cited above, justice Upadhyaya was alerted by CJI Khanna soon after the incident of March 14 was brought to his notice. “The CJI had asked the high court chief justice to also seek justice Varma’s viewpoint before sending the final report regarding the episode,” this person said.
Another person told HT that the high court chief justice is expected to submit his report to CJI Khanna by Friday. “During his meeting with the other judges of the Supreme Court on Friday morning, the CJI told them that he was awaiting Justice Upadhyaya’s report, which is expected by the end of the day. Justice Khanna also told them that while he is willing to take the matter to its logical end, procedural norms required him to first seek a report from the HC chief justice,” this person said.
This person added that it was justice Upadhyaya who first received the video of the cash at justice Varma’s residence – some of which was burnt. “CJI Khanna advised justice Upadhyaya to attach this video with his final report if he wanted this to be considered,” the second person added.
As per established protocol, the decision regarding an in-house inquiry can be taken by the CJI only after evaluating the report from the high court chief justice. The in-house inquiry procedure, formulated by the Supreme Court in 1999, mandates that when allegations of impropriety or corruption surface against a constitutional court judge, the CJI first seeks the judge’s response. If the response is unsatisfactory, the CJI can constitute a panel comprising a Supreme Court judge and two high court chief justices to investigate the allegations further. The findings of such a panel can lay the groundwork for further action, including potential parliamentary impeachment proceedings if the allegations are proven.
With the report from justice Upadhyaya expected , the next steps in the matter will depend on the assessment of its findings by CJI Khanna, who has assured Supreme Court judges that he is committed to ensuring judicial integrity while adhering to due process.
During a collegium meeting on Thursday, while a unanimous decision was taken to transfer justice Varma back to the Allahabad high court, some Supreme Court collegium members strongly urged CJI Khanna to go beyond the transfer and initiate an in-house inquiry against the judge, underscoring the need for stringent action to uphold judicial ethics. The collegium is headed by the CJI and also includes justices Bhushan R Gavai, Surya Kant, Abhay S Oka and Vikram Nath.
On Thursday, two judges in the collegium forcefully argued that mere transfer was not the “real solution” and that stronger steps were necessary to maintain public confidence in the judiciary. One collegium member insisted that justice Varma should immediately be stripped of judicial work, while another judge strongly advocated for an in-house inquiry, emphasizing that such a serious incident demanded institutional accountability.
According to people aware of the matter, the matter came to light after a fire broke out at justice Varma’s official residence in Delhi on the night of March 14. While justice Varma and his wife were in Bhopal on the day, his daughter and staff made the call to the fire office. When the fire brigade and police arrived at the scene, they discovered a huge stash of cash in his outhouse. The incident sent shock waves through judicial corridors, prompting intervention from the Supreme Court collegium.
After the fire was contained, first responders found bundles of cash, which led to official documentation of the discovery. Senior police officials were informed, and the matter was soon escalated to the highest levels of the judiciary and government.
While CJI Khanna, who has the exclusive prerogative to order an in-house inquiry, assured the collegium that he would deliberate on the available options, some members reportedly felt that merely transferring justice Varma would not be sufficient. They argued that allowing a judge to continue serving under such circumstances, without a thorough investigation, could severely damage the judiciary’s reputation and erode public trust.
Justice Varma was originally appointed as a high court judge in 2014. He was appointed to the Delhi high court in October 2021, following a recommendation by the Supreme Court collegium headed by then-CJI NV Ramana. Before his elevation, he served as special counsel for the Allahabad high court and held the position of standing counsel for the Uttar Pradesh government.