Justice Yashwant Varma Cash Scandal

On March 14, 2025, a fire at the official residence of Delhi High Court Judge Yashwant Varma in New Delhi led firefighters to discover a large quantity of partially burnt currency notes, reportedly worth Rs 15 crore, in a storeroom. Justice Varma and his wife were not present at the time. The discovery sparked a major judicial integrity crisis. A Supreme Court-appointed three-judge in-house committee investigated and, in its May 3, 2025 report, found him guilty of misconduct, concluding he had "covert or active control" over the cash. The committee recommended his removal, and then-Chief Justice Sanjiv Khanna forwarded the report to the President and Prime Minister. Justice Varma challenged the inquiry in the Supreme Court, which dismissed his petition on August 7, 2025, upholding the procedure. An impeachment motion was initiated in Parliament. On April 9, 2026, facing imminent removal, Justice Varma resigned, ending the process.

The Supreme Court on August 7, 2025, dismissed Justice Varma's plea, affirming the in-house inquiry was fair and legally sound. Facing a parliamentary impeachment motion, Justice Yashwant Varma resigned on April 9, 2026, rendering the proceedings infructuous and allowing him to retain pension benefits.

The primary dispute centered on the origin and ownership of the unaccounted cash. Justice Varma denied any link, claiming conspiracy and challenging the inquiry's procedural fairness, including the reversal of the burden of proof. The integrity of the initial investigation and the handling of evidence were also key points of contention.

The scandal severely damaged public trust in India's judiciary, sparking widespread debate on judicial accountability, transparency in in-house inquiries, and the efficacy of the impeachment process. It highlighted the challenges in investigating and removing senior judges and led to calls for systemic reforms to address corruption within the higher judiciary.