Inquiry panel says Justice Varma didn't report cash stash

The three-judge panel, comprising Chief Justice Sheel Nagu (Punjab and Haryana High Court), Chief Justice GS Sandhawalia (Himachal Pradesh High Court), and Justice Anu Sivaraman (Karnataka High Court), was constituted on March 22 by then Chief Justice of India Sanjiv Khanna to look into the incident.

Cash seen by fire, police officials; video evidence submitted

According to the 64-page report submitted by the panel, there is “sufficient substance” in the allegations against Justice Varma. It found visual evidence, including videos and photographs, and corroborative testimonies from multiple eyewitnesses, confirming the presence of a substantial quantity of Rs 500 notes scattered on the floor of the storeroom inside 30 Tughlaq Crescent — the judge’s official residence in Delhi.

The panel said it recorded statements from 55 witnesses, including fire personnel, Delhi Police officials, Justice Varma’s daughter Diya Varma, and domestic staff. Testimonies were recorded over 10 days and video documented to pre-empt future challenges to their authenticity.

One witness described the scene inside the room: “As soon as I entered, I saw a huge pile of Rs 500 notes lying on the floor to the right and in front. I was shocked, it was the first time I had seen such a large amount of cash scattered on the floor in my life.”

Room under Varma’s control, cash removed next morning

The fire broke out on the night of March 14. The panel visited the judge’s home around 11.35 pm the same night and later established that the storeroom was exclusively controlled by Justice Varma and his family. It also concluded that the cash was removed from the storeroom early on March 15, based on “strong circumstantial evidence.”

The report added that the volume of currency was such that it could not have been stored there without the judge’s silent or active consent. Yet, neither the judge nor any family member reported the matter to the police or senior judicial authorities. “No plausible explanation has been given — the judge’s claim of lack of knowledge is unbelievable,” the report noted.

Alleged attempts to suppress evidence

The panel also looked into the roles of Justice Varma’s private secretary Rajinder Singh Karki and daughter Diya Varma in the possible destruction of evidence or cleaning of the scene. Karki allegedly instructed fire personnel not to mention the discovery of the notes in their report. Though Karki denied this, the panel said other testimonies and electronic evidence contradicted his statement.

Fire officials reportedly said they were told not to pursue the matter further because “higher-ups were involved.” The domestic staff denied seeing any cash, but the panel said it found no reason to disbelieve the consistent accounts of public servants and first responders.

Panel rejects conspiracy defence, recommends impeachment

Justice Varma has claimed the incident was part of a conspiracy to tarnish his image. But the panel dismissed this argument, stating: “Currency notes were seen by multiple people and recorded in real time. It is implausible they were planted to frame him.” The committee said the facts “undeniably establish” that a large quantity of cash was present at the judge’s residence. In light of this, it recommended the initiation of removal proceedings.

Transferred after fire, judge calls inquiry ‘unjust’

Justice Varma was transferred back to the Allahabad High Court following the incident, but he has not been assigned any judicial work since. He has neither resigned nor opted for voluntary retirement and continues to assert his innocence. Calling the inquiry “fundamentally unjust,” he has denied all wrongdoing.

After reviewing the panel’s findings, former CJI Sanjiv Khanna formally recommended Justice Varma’s removal.