Cash at Delhi HC judge’s house: Can Justice Yashwant Varma be removed if found guilty?

After the recovery of a huge pile of cash at the official residence of Delhi High Court judge Justice Yashwant Varma in Delhi, Chief Justice of India Sanjiv Khanna has sought a fact-finding report from Delhi High Court Chief Justice Upadhyaya. Sources said the Collegium members had suggested to the CJI to try and get this at the earliest as that will assist the decision on whether to order an in-house inquiry or not.

The Collegium led by CJI Sanjiv Khanna took a serious view of the incident after which it was decided to hold an in-house inquiry. According to highly placed sources, the in-house inquiry is already underway.

A meeting of all the Supreme Court judges happened just before the court convened for the daily hearings in their courtrooms.

Sources told THE WEEK, that CJI Khanna along with the other four senior-most judges -who are also part of the Collegium- have conveyed to the other judges the reasons for the transfer of the judge to another HC. 

It is learnt that the report recommended a transfer since he is also part of the Delhi High Court Collegium which plays a crucial role in the appointment of judges.

Meanwhile, Justice Varma didn’t attend his court on Friday and had gone on leave.

In the interim, the High Court Bar Association (HCBA), Allahabad also passed a resolution condemning corruption. 

Early in the day, the Delhi HC Chief Justice Upadhyaya while responding to senior advocate Arun Bhardwaj on the allegations against Justice Varma said, “Today's incident has pained many of us. Please take some steps on the administrative side so these incidents do not happen in future and the judicial system is maintained.”

The incident leading up to the discovery of cash took place on Holi. Reports suggest that Justice Varma was not at home when a fire broke out at his official residence and family members alerted the fire brigade. Reports also suggested that while dousing the fire, the first responders stumbled across a huge amount of unaccounted cash inside a room.

Justice Varma was first appointed as an Additional Judge of the Allahabad High Court in October 2014. He took oath as a permanent member of that court two years later, in February 2016. During his tenure at the High Court, he handled matters relating to the Constitution and labour disputes, as well as laws governing industries, corporations and taxes.

Supreme Court’s official statement

Supreme Court of India in an official release said, "On receiving the information, the Chief Justice of the Delhi High Court commenced the In-house enquiry procedure collecting evidence and information. The Chief Justice of the Delhi High Court, who had commenced his enquiry prior to the Collegium meeting on 20th March 2025, will be submitting his report to the Chief Justice of India today i.e. on 21 March 2025. The report will be examined and processed for further and necessary action."

The statement by the Supreme Court further reads, "The proposal for transfer of Mr Justice Yashwant Varma, who is the second senior most Judge in the Delhi High Court and a member of the Collegium, to his parent High Court ie, the High Court of Judicature at Allahabad, where he will be ninth in seniority, is independent and separate from the In-house enquiry procedure. The proposal was examined by the Collegium comprising of the Chief Justice of India and four senior-most Judges of the Supreme Court on 20 March 2025, and thereafter letters were written to the consultee Judges of the Supreme Court, the Chief Justices of the High Courts concerned and Mr. Justice Yashwant Varma. Responses received will be examined and, thereupon, the Collegium will pass a resolution."

How is a judge removed?

In 1999, the Supreme Court laid down guidelines to deal with allegations of corruption, wrongdoing, and judicial irregularity against judges of the Constitutional Court.

According to these guidelines, on receiving a complaint, the Chief Justice will first seek a reply from the judge concerned. If he is dissatisfied with the answer or believes the matter requires further investigation, an internal committee is formed.

After the committee submits a report and if the Chief Justice thinks that the alleged misconduct of the judge in question is grave requiring removal, he will ask the judge to resign. If the judge refuses, the Chief Justice will then write to the government to initiate proceedings for his/her removal by Parliament, under Article 124(4) of the Constitution.

Article 124 (4) says: "A Judge of the Supreme Court shall not be removed from his office except by an order of the President passed after an address by each House of Parliament supported by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of the House present and voting has been presented to the President in the same session for such removal on the ground of proven misbehaviour or incapacity."

Article 218 applies the same rule to a judge of the High Court.

Further, the Constitution provides for the Parliament to decide how this process will be followed, and that's where The Judges (Inquiry) Act, 1968, comes in. This law essentially regulates the procedure for investigation and proof of misbehaviour or incapacity of a judge of the Supreme Court or a High Court.