Cash-discovery row: Delhi HC CJ's report, police video prompt CJI to set up in-house inquiry panel

New Delhi: A video shared by the police commissioner of burnt wads of cash at Justice Yashwant Varma's residence and preliminary findings of the Delhi High Court chief justice calling for a "deeper probe" have prompted Chief Justice of India Sanjiv Khanna to constitute a committee to conduct an in-house inquiry into the allegations against the judge.

In an unprecedented move, the top court, late on Saturday evening, uploaded on its website the inquiry report of Delhi High Court Chief Justice Devendra Kumar Upadhyaya -- complete with photos and videos -- regarding the alleged discovery of a substantial amount of cash from the residence of Justice Varma, a judge in the high court.

Justice Upadhyaya's report to the CJI contains material with regard to official communication that says four to five semi-burnt sacks of Indian currency notes were found from the judge's Lutyens' Delhi residence.

"On examining the incident reported, the material available and the response of Justice Yashwant Varma, what I find is that the Commissioner of Police in his report dated March 16, 2025 has reported that as per the guard posted at the residence of Justice Yashwant Varma, the debris and other partially-burnt articles were removed from the room where the fire had broken out in the morning of March 15, 2025....

"Accordingly, I am of the prima facie opinion that the entire matter warrants a deeper probe," Justice Upadhyaya has said said in his report dated March 21 and made public on Saturday evening.

The three-member inquiry committee formed by the CJI consists of Justices Sheel Nagu (Chief Justice of the Punjab and Haryana High Court), G S Sandhawalia (Chief Justice of the Himachal Pradesh High Court) and Karnataka High Court judge Anu Sivaraman.

"The Chief Justice of the High Court of Delhi for the time being has been asked not to assign any judicial work to Mr Justice Yashwant Varma," the top court said in a statement on Saturday.

However, no timeline has been fixed for the three-member inquiry committee to conclude the probe.

The 25-page inquiry report of Justice Upadhyaya, uploaded on the apex court's website, contains two short notes in Hindi that mention that after the fire at the storeroom of Justice Varma's residence on March 14 was doused, four to five half-burnt sacks containing currency notes were found. The report said prima facie, it seemed that a short-circuit had led to the fire.

The video, also shared by Delhi Police Commissioner Sanjay Arora with Justice Upadhyaya, clearly shows burnt cash and fire fighters dousing the flames.

Justice Varma has, in his response, strongly denounced the allegations in the currency-discovery row and said no cash was ever placed in the storeroom either by him or any of his family members.

In his response submitted to the Delhi High Court chief justice, Justice Varma has said the allegation of cash discovery from his residence clearly appears to be a conspiracy to frame and malign him.

"It was during our meeting at the High Court Guesthouse that I was first shown the video and other photographs, which had been shared with you by the Commissioner of Police. I was totally shocked to see the contents of the video since that depicted something which was not found on site as I had seen it.

"It was this which prompted me to observe that this clearly appeared to be a conspiracy to frame and malign me," Justice Varma has said in his written response to Justice Upadhyaya, who was tasked by the CJI with conducting an inquiry into the entire episode.

Justice Varma filed his reply after the Delhi High Court chief justice sought his response pursuant to an in-house probe initiated by the CJI.

He also said the media should have conducted some enquiry before making allegations and defaming him. Justice Varma said he was not aware of any money or cash lying in the outhouse storeroom.

"Neither I nor any of my family members had any knowledge of cash nor does it have any bearing or relation with me or my family. No such cash or currency was shown to my family members or staff who were present on that fateful night.

"I also strongly deny and outrightly reject the insinuation if made, that we removed currency from the storeroom. As stated above, we were neither shown nor handed over any sacks of burnt currency. In fact, and as stated above, the limited debris which was sought to be salvaged continues to exist in one part of the residence," the judge said.

Narrating the incident, Justice Varma said a fire broke out in the storeroom situated near the staff quarters of his official residence in the intervening night of March 14 and 15.

He said this room was generally utilised by all and sundry to store articles, such as unused furniture, bottles, crockery, mattresses, used carpets, old speakers, garden implements as well as CPWD material.

"At the cost of repetition, I unequivocally state that neither I nor any of my family members had stored or kept any cash or currency in that storeroom at any point of time. Our cash withdrawals, made from time to time, are all documented and always through regular banking channels, the use of UPI applications and cards. Insofar as the allegation of the recovery of cash, I once again make it clear that no one from my house ever reported seeing any currency in burnt form in the room," he said in his response.