Cash row: Parliament to examine probe report on Justice Varma

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An inquiry report investigating allegations against Justice Yashwant Varma, concerning unaccounted cash, has been submitted to the Lok Sabha Speaker, setting the stage for parliamentary review.

Justice Yashwant Varma

IMAGE: Security personnel outside the residence of Justice Yashwant Varma, in New Delhi. Photograph: Jitender Gupta/ANI Photo

Key Points

  • An inquiry committee has submitted its report on allegations against Justice Yashwant Varma regarding unaccounted cash.
  • The report was submitted to Lok Sabha Speaker Om Birla and will be presented to both Houses of Parliament.
  • Justice Varma resigned from the Allahabad High Court, rendering removal proceedings 'infructuous'.
  • The inquiry committee was formed after allegations of burnt currency were discovered at Justice Varma's residence.
  • Despite his resignation, the inquiry committee continued its work, considering it judicial work.

An inquiry committee investigating allegations against Justice Yashwant Varma -- against whom removal proceedings were initiated over the alleged discovery of unaccounted cash from his official residence -- has submitted its report to Lok Sabha Speaker Om Birla.

The report, which was presented in accordance with statutory requirements under the Judges (Inquiry) Act, 1968, on Monday, will be laid before both Houses of Parliament in 'due course', the Lok Sabha Secretariat said.

 

Parliament to Review Justice Varma Inquiry Report

The Monsoon Session, which usually commences in the third week of July, will be the next time Parliament is likely to meet.

The three-member inquiry committee was constituted by the speaker on August 12, 2025.

During a fire that broke out in the official residence of Justice Varma on the night of March 14, 2025, firefighters allegedly discovered massive amounts of burnt currency at a storeroom in the Delhi bungalow.

He was then a judge of the Delhi high court and was later repatriated to his parent High Court of Allahabad.

Justice Varma's Resignation and its Implications

An in-house committee constituted by then CJI Sanjiv Khanna concluded that Justice Varma had 'active or tacit control' over the specific storeroom where the cash was allegedly hidden.

In July 2025, over 200 MPs signed a motion to remove the judge.

A Supreme Court or high court judge and the chief election commissioner can only be removed by Parliament by a procedure mentioned in the Judges (Inquiry) Act.

In August last year, Speaker Birla constituted a three-member Judges Inquiry Committee to look into the charges.

However, facing the prospect of being removed by Parliament, Justice Varma recently resigned as a judge of the Allahabad high court, rendering the removal proceedings against him 'infructuous'.

Legal Perspectives on Judge's Resignation

People aware of the process to appoint and remove Supreme Court and high court judges said, according to a top court judgment, a judge is 'deemed to have resigned' once he or she tenders resignation to the President, and 'circulates' its copy (makes it public).

A judge's resignation is not 'subject to acceptance' by the President, they said.

According to procedure, the President gives 'formal acceptance', following which it is notified by the Department of Justice in the Law Ministry.

Justice Varma's name still appears as a sitting judge of the Allahabad high court.

As per an SC ruling and precedence, Justice Varma has resigned and is now a private citizen.

"Going by this, a former judge cannot be removed by Parliament," a person aware of the procedure noted.

Justice Varma was to otherwise retire on January 5, 2031 on attaining the age of 62 years.

Inquiry Committee's Work Continues

The probe committee started working when Varma was a sitting judge and his subsequent resignation had no bearing on the panel's work.

"When the panel investigates charges, it is considered judicial work. They submitted a report of their work...it is a parallel issue," explained the domain expert.

Once the report is tabled in Parliament, it is to be seen what the Houses decide, said the person cited above.