No one allowed in storeroom where money was found, firefighters told to keep silent: Probe makes startling revelations in Justice Varma case, Kapil Sibal calls him the best judge

A panel consisting of three judges from the Supreme Court has proposed the dismissal of Justice Yashwant Varma. As a result, the impeachment process is likely to be initiated against him. Varma, who is charged with corruption, has been defended by lawyer Kapil Sibal who declared that his client is among the finest judges in history.

The committee recommended the dismissal of Varma from his position which is detailed in a 64-page report that has been forwarded to both the President and the Prime Minister. The report explicitly mentioned that the burnt notes were discovered in the storeroom of his official residence.

Only Varma and his family were allowed access to the storeroom as no outsiders could access it. The investigation uncovered that during the process of extinguishing the fire, the firefighters observed “partially burned notes.” A witness even remarked that he had encountered such a vast pile of cash for the first time in his life.

The committee acknowledged that such a large quantity of notes could not have been kept there without the permission of Varma or his family. It also conducted an inquiry into the involvement of his daughter, Diya Varma, and his personal secretary, Rajinder Singh Karki, who are reported to have prohibited the firefighters from disclosing information regarding the cash.

The committee has concluded that there is adequate evidence to initiate the procedure for the removal of Varma from his position, based on these findings. Verma refuted these accusations, insisting that neither he nor his family possessed any information regarding this cash.

He further stated that anyone was free to enter and exit the storeroom. In early June 2025, reports emerged indicating that the procedure for the removal could commence shortly which would mark the first instance of the forcible ouster of an active judge in India’s history.

Shocking disclosures in the report

The Supreme Court established an investigation committee regarding the case of Justice Yashwant Varma. A total of 55 witnesses were interrogated in this matter. Among those questioned was his daughter. The report indicated that various witnesses, along with videos and photographs, substantiated the discovery of a significant quantity of cash, particularly 500 rupee notes, some of which were partially burned, located in the storeroom of his residence in Delhi.

It is particularly surprising that, despite the gravity of the incident, neither Varma nor his family reported it to the police or informed any senior judicial authority. The committee noted this as unusual conduct. They expressed that Varma’s assertion of being unaware of the incinerated cash is implausible.

“If a conspiracy existed, why did Justice Varma fail to notify the Chief Justice of the High Court or the Chief Justice of India?” the committee inquired. Fire and police officials also reported observing a “large pile” of Rs 500 notes in the storeroom once the fire was doused. Although the household staff denied witnessing the cash, the committee deemed the testimonies of government officials to be credible.

The probe additionally unveiled that the storeroom was exclusively managed by Verma and his family. Furthermore, the incinerated cash “vanished” following the incident and the area was tidied up. The committee indicated that Varma’s personal secretary had instructed the firefighter personnel to omit any reference to the cash in the report. The fire service officer also informed that he was requested not to investigate further as “individuals in high positions were implicated.”

What is the matter

In March 2025, a fire broke out at the official residence of Justice Yashwant Varma in Delhi. As firefighters worked to put out the fire, they found a considerable stack of charred 500 rupee notes in the storeroom. Afterward, the then Chief Justice of India made accusations against Varma. The Supreme Court then established a committee to examine the issue. Varma was reassigned from the Delhi High Court to the Allahabad High Court soon after the instance. This move faced opposition from some lawyers and legal professionals.

Action taken against Justice Verma

The Supreme Court set up a three-member inquiry committee to investigate the case which interviewed 55 witnesses and took Varma’s statement. It delivered a 64-page report to the President and the Prime Minister, suggesting his removal from his office. He had been moved to the Allahabad High Court but has not been allocated any judicial tasks. He has not resigned or opted for voluntary retirement at this time.

Presently, there is a chance to initiate the impeachment process against him in Parliament, which would be the first occurrence of a sitting judge’s removal in India. Varma has referred to the investigation as “fundamentally incorrect”, but the committee has rejected his defense, emphasising that “the currency notes were seen by multiple people and documented in real time. It is highly unlikely that the money was placed there to incriminate him.”

The committee also questioned the roles of his daughter and personal secretary in the destruction of evidence or the sanitization of the crime scene.

He is the best judge: Kapil Sibal

Senior attorney and Rajya Sabha MP Kapil Sibal has come to the defense of Varma. On 17th June he referred to the latter as “one of the best judges” and condemned the government’s actions. He alleged that the government’s true intention is to dismantle the collegium system and assert control over judicial appointments.

He charged the government with pursuing a case against Varma, while not taking similar measures against Justice Shekhar Yadav who faced accusations regarding certain “communal” last year and opposition MPs had also submitted an impeachment notice against him.

Sibal declared, “I can say with full responsibility that he (Varma) is one of the best judges I have argued before. You can ask any lawyer of the High Court or Supreme Court, this judge is not accused of doing anything wrong.”

“It is shocking that you (the government) are targeting a judge against whom there is no evidence and are protecting the one against whom there is no need for any proof because his statement is in the public domain and there is an impeachment motion pending with the Speaker but he is sitting on it for signature verification,” he added.

However, contrary to the claims made by Sibal, a report from the three-judge inquiry panel sent to Chief Justice Sanjiv Khanna has confirmed the discovery of a substantial amount of cash at Justice Yashwant Varma’s residence on Tughlaq Road on 14th March.

Read the article in Hindi here.

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