'Why Justice Varma Participated In In-House Inquiry': Supreme Court Hears Plea Against Indictment Over Cash Recovery

The Supreme Court on Monday (28 July) began hearing a petition filed by Allahabad High Court judge Justice Yashwant Varma, challenging the in-house committee report that indicted him after a large sum of unaccounted cash was allegedly found at his Delhi residence.

A Bench of Justices Dipankar Datta and AG Masih took up the plea, in which Justice Varma has sought a declaration that the recommendation of former CJI Sanjiv Khanna for his removal was “unconstitutional and ultra vires.”

As reported by Bar&Bench, during the hearing, Senior Advocate Kapil Sibal, representing Justice Varma, argued that “without following the process this cannot be done,” citing Articles 124(4) and 124(5) of the Constitution.

He maintained that “till such process is followed, judges’ conduct cannot be discussed anywhere.”

He also criticised the public release of tapes and allegations, saying, “All the release of tapes, putting on the website, and a public furore consequential thereto.. Media accusations against judges.. findings by the public.. discussing conduct of judges .. All are prohibited.”

Justice Datta pressed Sibal on why Varma had participated in the inquiry if he believed it was unconstitutional. “You are a constitutional authority. You should have come then and there and got an order!” he asked.

Sibal countered that the report failed to establish key facts. “If cash is found in the out house… the cash belongs to whom? How can that be attributed to me?” he said, insisting the report “cannot be the basis of impeachment.”

The Bench noted that while sanctity of procedure must be maintained, the petition must stand on points of law.

Justice Datta directed corrections in the plea’s party memo and asked Sibal to submit a one-page bullet summary of arguments.

The case has been listed for further hearing on Wednesday (30 July).

The controversy stems from a fire at Varma’s residence on 14 March, during which fire fighters allegedly discovered bundles of burning cash.

While Varma denied the charges, terming them a conspiracy, CJI Khanna set up a three-member panel comprising Punjab & Haryana High Court CJ Sheel Nagu, Himachal High Court CJ GS Sandhawalia, and Karnataka High Court Justice Anu Sivaraman.

The committee began its probe on 25 March and submitted its report on 3 May, which was later forwarded to the President.

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