New Delhi:
Justice Yashwant Varma, a sitting judge of the Delhi High Court, is facing intense scrutiny after unaccounted cash was allegedly found at his official residence. The discovery, made on March 14, has sparked a judicial and political storm, linking him to a 2018 bank fraud case and raising serious questions about judicial integrity.
Past Allegations Resurface
Justice Varma was named in a Central Bureau of Investigation (CBI) FIR in 2018, which accused Simbhaoli Sugar Mills of defrauding Oriental Bank of Commerce (OBC) through a fraudulent loan scheme. At the time, Varma served as a non-executive director of the company.
The bank alleged that between 2012 and 2015, Simbhaoli Sugar Mills misused a Rs 148.59 crore loan meant for farmers, ultimately leading to a loan default of Rs 109.08 crore. The Enforcement Directorate (ED) later launched a money laundering probe linked to the case.
Judicial Intervention and Fresh CBI Investigation
In December 2023, the Allahabad High Court ordered a fresh CBI investigation into multiple banks involved in the fraudulent loans. The court ruled that the case had “shaken the conscience” of the judiciary and directed the CBI to probe bank officials who approved the loans.
Following this, in February 2024, the CBI reopened its investigation, focusing on why Simbhaoli Sugar Mills continued to receive loans despite being a defaulter.
Fire and Cash Discovery at Judge’s Residence
On March 14, 2024, a fire broke out at Justice Varma’s residence in Lutyens’ Delhi. Firefighters arriving at the scene reportedly found burnt jute sacks and cash scattered around the storeroom. The recovered amount is estimated to be Rs 15 crore.
While no FIR was filed since no injuries occurred, videos of the cash recovery were recorded and shared with senior Delhi Police officials, prompting an inquiry ordered by the Chief Justice of India (CJI).
Judicial Response and Controversy
The Supreme Court Collegium, led by CJI Sanjiv Khanna, has transferred Justice Varma back to the Allahabad High Court. However, judicial sources emphasize that this is only the “first step,” hinting at further action depending on the inquiry’s outcome.
Justice Varma was absent from court the following day, reportedly “on leave”, while legal experts and senior advocates debated the implications of the case.
Public and Legal Outrage
Delhi High Court Chief Justice DK Upadhyaya called the incident “demoralizing” for the judiciary, while senior advocate Kapil Sibal urged reforms in the judicial appointment process.
Former Solicitor General Harish Salve, however, questioned the lack of clarity in the investigation. Notably, Delhi Fire Chief Atul Garg denied any cash recovery, contradicting earlier reports.
“If the allegations are false, why is an inquiry being conducted? And if they are true, then merely transferring the judge is not enough,” Salve remarked. He further suggested an independent external panel to ensure a transparent investigation.
What’s Next?
With conflicting reports and increasing pressure from legal circles, the judiciary now faces a critical test of accountability. If proven true, this case could lead to one of the biggest judicial scandals in recent history. If false, it raises concerns about misuse of allegations to discredit judges.
For now, all eyes remain on the Supreme Court’s next move in this unprecedented controversy.
