New Delhi, March 23, 2025 – Just after the sensational scandal of photographs of cash recovered from Justice Yashwant Varma’s house went public, the judiciary was shaken to its core in one of the most sensational scandals to hit the Delhi High Court. Late in the evening, on the 22nd of March, bundles of partially burnt cash notes of ₹500, stuffed in sacks, were shown in the domestic inquiry report of the case and made public after submission to the Supreme Court. The improper handling of evidence began with the fire on March 14 of this year at the judge’s bungalow, which had led to partially burnt sacks of cash found to weigh between 4 and 5.
Chief Justice of India (CJI) Sanjeev Khanna, amid a public uproar, has ordered an inquiry and armed the investigators with almost embarrassing questions and directives. However, Justice Varma is adamant that he is innocent, declaring the whole thing a conspiracy to ruin his fair name.Justice Varma’s reputation is now under the sniffer’s nose and has sparked debates concerning accountability in India’s judiciary. Alas, he already carries a heavy controversy on his brow, and the latest developments threaten to imprint a long shadow on his professional career. Here is what we have so far:
The Fire That Sparked a Storm
The entire episode began on the night of March 14, when a fire erupted in a storeroom adjacent to the staff quarters of Justice Varma’s sprawling bungalow at 30, Tughlak Crescent. The fire was purportedly caused by a short circuit and was put out promptly by two fire tenders after a midnight call from the judge’s personal secretary. During the incident, Justice Varma and his wife were in Bhopal while their daughter and elderly mother remained at home. What appeared to be a routine incident took a dramatic turn, though, when the fire brigade discovered 4-5 partially burnt sacks containing bundles of 500 notes among the debris.
The following day, the Delhi Police Commissioner notified Chief Justice DK Upadhyay of the Delhi High Court, who was on vacation in Lucknow for Holi. He immediately proceeded with an internal inquiry, and on March 21, he handed in his findings to the Supreme Court. The report was made public a day later, together with three damning photographs, igniting a frenzy of speculation. How did so much cash get into a judge’s house? Further, why was it burnt in part?
Justice Varma’s Defense: “I’m Being Framed”
Justice Varma has refuted any allegation against him and presents himself as a victim of a sinister plot. He also claimed in response to Chief Justice Upadhyay that the storeroom where the cash was recovered was an open space meant for the storage of outmoded furniture, crockery, mattresses, and gardening tools, accessible to staff and CPWD workers. “Neither I nor my family ever kept cash there,” Varma asserted, emphasizing that the recovered money does not belong to him.
On the evening of March 15, he recalled returning to Delhi and then hearing of the fire from his daughter and secretary. When he visited the site, he found nothing but ash. Only then, seeing the videos and stills that the police had shared with Chief Justice Upadhyay, did he come to terms with the tragedy of what had occurred. “What I saw was vastly different from what was shown,” he said, astonished at the variation. He alleged a conspiracy against him to tarnish his name, linking this incident to December social media campaigns against him that he described as utter baselessness. “A judge’s integrity is everything,” he stated, appealing not to let this matter shadow decades of service.
CJI Steps In: Tough Questions and a Deepening Probe
CJI Sanjeev Khanna appears to have directed his sharp scrutiny toward Justice Varma’s tale. He posed three pointed questions: What is Justice Varma’s explanation for cash found in his premises? What is the source of this cash? And, who had burnt notes on March 15 morning? The judge has ordered his full-fledged investigation into the matter, including call record retrievals for Judge Varma for six months and details about his residential security personnel. He further instructed Justice Varma not to tamper with any mobile data.
However, they came out from the judicial work awaiting further direction. The chief justice of the supreme court has added fire to the controversy by stating that the storeroom appeared to be quite inaccessible to outsiders, indicating that the cash could only have come from someone within the household-residents, servants, or CPWD staff. His doctor, on the other hand, corroborates the timelines, saying the fire call came from Varma’s secretary and that cash was found later after dousing the fire.
And of course, Justice Varma’s past does not seem to be working in his favor. In 2018, he was part of a CBI FIR during a ₹97.85 crore loan scam at Simbhaoli Sugar Mill, where he was a non-executive director. The controversy fell through into nothing after the intervention of the Supreme Court, but the shadow of that controversy still looms large.
What Happens Next?
With the confirmation of a deepening probe, the credibility of the judiciary is now in crisis. Either a successful defense by Justice Varma could lead to a possible unmasking of systemic loopholes, or an incriminating tie of cash to Varma could mean devastating upheaval that questions corruption at high levels. At this moment, the attention is now on the Supreme Court and Varma’s chance to restore his reputation. One thing is for sure: this scandal is far from over.
