Cash discovery row: Justice Varma likely to face impeachment as CJI forwards inquiry panel report to President, PM

New Delhi: Justice Yashwant Varma may face impeachment proceedings over the discovery of the cash pile at his bungalow here, following the indictment by an inquiry panel and his refusal to resign as a judge of the high court.

Chief Justice of India Sanjiv Khanna has sent the report of three-member judges' committee, which indicted Justice Yashwant Varma, to the President and the Prime Minister for further action. Varma, the then Delhi High Court judge, is involved in a case of cash haul allegedly found at his residence during the fire incident on March 14-15.

"Chief Justice of India, in terms of the in-house procedure, has written to the President and the Prime Minister, enclosing therewith copy of the 3-member committee report of May 3, 2025 along with the letter/response of May 6, 2025 received from Justice Varma," a press release from the Supreme Court stated on Thursday.

The CJI's decision to send the report to the government indicated that he has recommended for impeachment of Justice Varma on the basis of the inquiry report and the refusal by the judge to step down.

After judges' committee submitted its report on May 4, CJI Khanna had sought a response from Justice Varma, currently a judge of the Allahabad High Court.

It was stated that he may be asked to resign or face adverse recommendation for initiating impeachment proceedings.

Justice Varma had earlier denied recovery of any cash and termed the whole episode as a conspiracy. "I unequivocally state that no cash was ever placed in that storeroom either by me or any of my family members and strongly denounce the suggestion that the alleged cash belonged to us," he had said.

On March 22, the CJI had set up the committee consisted of Justice Sheel Nagu, Chief Justice of the High Court of Punjab and Haryana, Justice G S Sandhawalia, Chief Justice of the High Court of Himachal Pradesh and Ms Justice Anu Sivaraman, judge of the High Court of Karnataka as part of in-house inquiry, within days of the incident coming to light.

The committee, which finalised its report on May 3, submitted it to the CJI on May 4.

Notably, as per the Supreme Court judgment in K Veeraswami Vs Union of India (1991), no criminal case can be registered against a judge of a high court or the Supreme Court without the prior permission of the Chief Justice of India.

Justice Varma was subsequently transferred to the Allahabad High Court, his parent high court. The judge has since then been divested of any judicial work.