Supreme Court dismissed plea seeking criminal action against former judge Justice Yashwant Varma over alleged recovery of burnt cash from his Delhi residence

The Supreme Court on Friday dismissed a plea seeking registration of an FIR and a court-monitored Special Investigation Team (SIT) probe against former Delhi High Court judge Justice Yashwant Varma over the alleged recovery of burnt currency notes from his official residence, observing that the petition appeared to be aimed at “cheap publicity.”

The Bench of Justices P S Narasimha and Alok Aradhe refused to entertain the plea filed by advocate Ghanshyam Upadhayay, who sought criminal action against Varma in connection with the alleged discovery of semi-burnt and unburnt currency notes following a fire at his official residence in Lutyens’ Delhi on March 14, 2025. 


Appearing in person, Upadhayay argued that Justice Varma's resignation from judicial office did not extinguish any criminal liability arising from the alleged recovery of unaccounted cash.

The petitioner submitted that an earlier plea had been dismissed on the technical ground that no complaint had been filed before approaching the Supreme Court and claimed that the procedural requirement had now been complied with.

He further argued that a High Court judge is a public servant and that resignation or retirement would not confer immunity from prosecution.

The Bench, however, declined to entertain the petition.

"All cheap publicity. We are not inclined to entertain this. Dismissed", the Bench observed.

Background

The alleged cash discovery dates back to March 14, 2025, when a fire broke out at Justice Varma's official residence in New Delhi. Justice Varma was not present at the residence at the time. Firefighters reportedly discovered semi-burnt wads of currency notes during the operation.

The incident subsequently triggered an inquiry into allegations concerning the presence of cash at the judge's residence.

Justice Varma was transferred from the Delhi High Court to the Allahabad High Court amid the controversy and took oath there on April 5, 2025. He subsequently resigned from judicial office on April 19, 2025.

The controversy also led to parliamentary proceedings seeking his removal. The Lok Sabha Speaker constituted a three-member inquiry committee after receiving a motion signed by 146 Members of Parliament seeking Justice Varma's removal.

The Supreme Court had earlier constituted a three-member judicial inquiry panel to examine the allegations. The panel examined more than 55 witnesses and reportedly found substance in the allegations concerning the presence of burnt and unburnt cash at the judge's residence.

The panel's findings ultimately led to a recommendation for Justice Varma's removal on grounds of misconduct. 

The Centre had introduced an impeachment motion against Justice Yashwant Varma in the upcoming session of Parliament, following his indictment by the SC-Panel set up in cash probe. Sources within the government confirmed that efforts are underway to build consensus across party lines before tabling the motion. Parliamentary Affairs Minister Kiren Rijiju is expected to initiate discussions with leaders of various political parties to garner support for the move.

The allegations surfaced after a fire broke out at Justice Varma’s official residence in New Delhi earlier, while he was serving at the Delhi High Court. Several sacks were uncovered filled with cash on premises, prompting a deeper probe into the matter.

Earlier, Bombay Lawyers Association approached Chief Justice of India seeking sanction to initiate criminal prosecution against Justice Varma.

More recently, Supreme Court appointed panel which indicted Justice Varma revealed that the access to storeroom where burnt cash was found, was under active control of the judge and his family.

The fresh plea before the Supreme Court sought to initiate criminal proceedings notwithstanding Justice Varma's resignation. The Court, however, declined to intervene and dismissed the petition.

Case Title: Ghanshyam Dayalu Upadhyay v. Union of India 

Bench: Justices P S Narasimha and Alok Aradhe

Hearing Date: August 7, 2026

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