New Delhi, March 23, 2025 – A major controversy has erupted in India’s judicial system following the discovery of a significant amount of burnt currency at the official residence of Delhi High Court Justice Yashwant Varma, prompting an internal inquiry and widespread public scrutiny. The incident, which unfolded after a fire broke out at the judge’s bungalow on the night of March 14, has raised serious questions about judicial integrity and accountability.
The fire, reported at approximately 11:35 PM at Justice Varma’s residence located at 30 Tughlak Crescent in New Delhi’s upscale Lutyens’ zone, was initially attributed to a short circuit in a storeroom adjacent to the judge’s office. Delhi Fire Service personnel swiftly responded to extinguish the blaze, which was confined to “stationery and domestic articles,” according to an official report. However, the situation took a dramatic turn when firefighters allegedly discovered four to five sacks of partially burnt Indian currency notes, predominantly in Rs 500 denominations, within the storeroom.
The Supreme Court, in an unprecedented move, released a detailed 25-page inquiry report on March 22, compiled by Delhi High Court Chief Justice Devendra Kumar Upadhyaya. The report, accompanied by photographs and a video from the Delhi Police Commissioner, confirmed the presence of the burnt cash and noted that the storeroom showed no signs of forced entry, suggesting access was limited to individuals associated with Justice Varma. Chief Justice Upadhyaya concluded that the matter “warrants a deeper probe,” a stance that has fueled calls for transparency.
Justice Varma, who was not present at the residence during the incident, has vehemently denied any wrongdoing. In a statement submitted to Chief Justice Upadhyaya, he described the allegations as “preposterous” and “incredulous,” asserting that neither he nor his family had any knowledge of cash being stored in the room. He labeled the situation a “conspiracy to frame and malign” him, pointing out that the storeroom was separate from the main residence and accessible to multiple individuals. Varma expressed shock at the visuals released by the police, questioning their authenticity and the process followed at the scene.
The controversy has quickly escalated, with the Supreme Court taking swift action. Chief Justice of India Sanjiv Khanna, after consulting the apex court’s Collegium, has established a three-member inquiry panel comprising Chief Justices Sheel Nagu, GS Sandhawalia, and Anu Sivaraman to investigate the matter. Justice Varma has been relieved of all judicial duties pending the outcome of the probe, and he has been directed to preserve all communication records from his phone for the past six months, including call details and internet data, which could provide critical evidence.
Public and legal reactions have been intense. The Allahabad High Court Bar Association, where Justice Varma previously served before his appointment to Delhi in October 2021, has strongly opposed his potential transfer back to Allahabad, with President Anil Tiwari calling it an inadequate response. “The Allahabad High Court is not a trash bin,” Tiwari declared, urging a thorough investigation by the Central Bureau of Investigation (CBI) or Enforcement Directorate (ED) to restore public faith in the judiciary. Meanwhile, Delhi High Court Bar Association President Mohit Mathur has cautioned against premature conclusions, citing the ambiguity of the evidence and defending Varma’s reputation.
The incident has also drawn political attention. Shiv Sena-UBT leader Priyanka Chaturvedi criticized the initial handling of the case, alleging attempts to “sweep it under the rug” and emphasizing the need for judicial accountability. Congress leader Pawan Khera questioned the origins of the cash, calling it a “very serious matter” that must be addressed impartially.
Justice Varma, known for his rulings on high-profile taxation cases—including a recent decision rejecting a Congress plea against tax reassessment proceedings—now faces a pivotal moment in his career. The inquiry’s findings could lead to significant consequences, ranging from resignation to impeachment proceedings under Article 124(4) of the Constitution, depending on the evidence uncovered.
As the investigation unfolds, the case continues to dominate headlines, with videos of the burnt currency circulating online and intensifying demands for clarity. The Supreme Court’s decision to make the inquiry report public marks a rare step toward transparency, but many questions remain unanswered: What was the source of the cash? How did it end up in the storeroom? And what will this mean for the judiciary’s credibility? For now, the nation watches closely as this unfolding scandal tests the resilience of India’s judicial system.