Justice Yashwant Varma ‘Cash-at-Home’ Scandal: Lok Sabha Speaker Sets Up 3-Member Inquiry Panel
This announcement marks formal initiation of the constitutional process for possible removal of the judge;
In a significant escalation of the Justice Yashwant Varma “cash-at-home” scandal, Lok Sabha Speaker Om Birla on Tuesday announced the formation of a three-member inquiry committee under the Judges (Inquiry) Act, 1968, to examine allegations of judicial misconduct against the Allahabad High Court judge.
The panel will be chaired by Justice Arvind Kumar, a sitting judge of the Supreme Court, with Chief Justice M. M. Shrivastava of the Madras High Court and Vasudeva Acharya, eminent jurist and Senior Advocate of the Karnataka High Court, as members.
This announcement marks the formal initiation of the constitutional process for the possible removal of a High Court judge. It comes after an in-house inquiry committee of the Supreme Court recommended Justice Varma’s removal, citing his “active control” over the premises where large quantities of cash were discovered in March 2025.
The Speaker stated he had received a notice of motion dated July 21, 2025, signed by a total of 146 members from both the ruling and opposition parties, including Shri Ravi Shankar Prasad and the Leader of the Opposition. The motion seeks to submit a representation to the President of India for the removal of Justice Yashwant Varma, a sitting judge of the Allahabad High Court, from office under Section 3 of the Judges (Inquiry) Act, 1968, read with Article 124(4) of the Constitution, as well as Articles 217 and 218.
The controversy erupted when burnt and partially burnt bundles of Rs. 500 notes were reportedly found during a fire at an outhouse linked to Justice Varma. The incident triggered widespread outrage and prompted then Chief Justice Sanjiv Khanna to order an internal probe. Following the findings, Justice Varma was transferred from the Delhi High Court to the Allahabad High Court, with his judicial work withdrawn.
On August 7, 2025, the Supreme Court dismissed Justice Varma’s plea challenging the in-house inquiry and its recommendations, observing that his conduct “does not inspire confidence” and clearing the way for Parliament to act.
Under the Judges (Inquiry) Act, the newly constituted committee will investigate the charges, examine witnesses and documents, and submit its findings to the Speaker. If the allegations are substantiated, Parliament can initiate impeachment proceedings, requiring a two-thirds majority in both Houses for removal.
With the panel in place, the case now moves from judicial scrutiny to parliamentary oversight, a step rarely taken in India’s legal history and closely watched as a test of judicial accountability.