“With immediate effect…”: Delhi High Court Relieves Justice Varma of Judicial Duties Amid Investigation into Cash-At-Home Row

Delhi High Court Chief Justice DK Upadhyaya on Monday announced that Justice Yashwant Varma has been removed from his judicial duties "with immediate effect" following the alleged discovery of a large pile of burnt cash at his residence after a fire. This decision came in the wake of an investigation into the matter, with Justice Varma being relieved of his responsibilities until further orders.

The official circular from the Delhi High Court confirmed the removal, stating, "In view of the recent events, the judicial work from Hon’ble Mr Yashwant Varma is withdrawn with immediate effect till further orders."

The move follows a recommendation from Chief Justice of India (CJI) Sanjiv Khanna, who had formed a three-member inquiry committee comprising Justice Sheel Nagu, Chief Justice of the Punjab and Haryana High Court; Justice GS Sandhawalia, Chief Justice of the Himachal Pradesh High Court; and Justice Anu Sivaraman, Judge of the Karnataka High Court, on Saturday to probe the allegations.

Along with the removal, the High Court also reassigned cases previously handled by Justice Varma's bench. These cases will now be overseen by Justices Subramonium Prasad and Harish Vaidyanathan Shankar, effective Tuesday. On Monday, the court master had already rescheduled matters listed before Justice Varma’s bench.

Delhi High Court Chief Justice Devendra Kumar Upadhyaya had recommended the in-house inquiry after reviewing the situation. "I am of the prima facie opinion that the entire matter warrants a deeper probe," Justice Upadhyaya said in his report, indicating the seriousness of the matter.

Justice Varma, who was appointed to the Delhi High Court in October 2021, had been presiding over cases related to sales tax, GST, and company appeals. The controversy emerged when news broke last week about a large pile of burnt cash found at his residence. Justice Varma has denied any wrongdoing, stating that neither he nor his family kept money in the outhouse, which is separate from the main residence, kept unlocked, and accessible to others. "I am truly shocked by the discovery and believe this is a conspiracy against me," he remarked. In his defense, Justice Varma explained that all of his family’s cash withdrawals were properly documented and made through regular banking channels, including UPI applications and cards.

The discovery led to prompting the Supreme Court to establish a committee to look into the matter. Later, the Supreme Court clarified that Justice Varma’s transfer to the Allahabad High Court was not related to the ongoing inquiry. The Supreme Court also made public a report filed by the Delhi High Court, including photographs and videos related to the discovery of the cash, ensuring transparency in the investigation.​