While controversy is raging over whether reported unaccounted cash was found at the official residence of Delhi High Court Justice Yashwant Varma, the matter has brought the spotlight back on his alleged past association with Simbhaoli Sugars Ltd, with questions now being raised about any potential conflicts of interest that existed in the Simbhaoli case.
Justice Varma is currently at the centre of a massive row following the allegations of recovery of a huge pile of cash from his Lutyens’ Delhi bungalow during a fire incident over the Holi weekend, which is being contested after the fire department’s denial.
Statement of Supreme Court on issue of Justice Yashwant Varma of Delhi High Court.
— ANI (@ANI) March 21, 2025
"There is misinformation and rumours being spread with regard to the incident at the residence of Mr. Justice Yashwant Varma...The proposal for transfer of Mr. Justice Yashwant Varma, who is the… pic.twitter.com/kewOwuarYw
In the interim, what has come out is details of a 2018 case of the Central Bureau of Investigation where Varma was named as an accused. The FIR, lodged following a complaint by the Oriental Bank of Commerce, alleged financial fraud involving Simbhaoli Sugars Ltd, where Varma served as a non-executive director before his elevation to the judiciary.
According to documents in possession with THE WEEK, CBI has named Varma as accused No 10 in a case involving the alleged misappropriation of Rs 97.85 crore loan sanctioned in 2011. The loan, intended for financing cane farmers’ agricultural equipment, was reportedly diverted for private use, causing losses of over Rs 109 crore to the bank. The company was flagged as a suspected fraud by the Reserve Bank of India as early as 2015.
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Under the agreement, the funds were to be transferred to an escrow account before being distributed to the farmers' personal accounts. Simbhaoli Sugar Mills guaranteed to repay the loan and cover any defaults or identity fraud by the farmers. However, the company allegedly submitted false ‘Know Your Customer’ documents and embezzled the funds. It is still unclear whether the CBI had sought any sanction against the judge or not.
Documents reveal that the Allahabad High Court initially ordered a CBI probe into the matter in 2021. However, in a significant ruling in 2023, the Supreme Court, under then-Chief Justice of India D.Y. Chandrachud, set aside the High Court’s directive, declaring the investigation unconstitutional and unwarranted. However, while the top court emphasized that no investigation was justified, it left room open for authorities to act if evidence of fraud emerged.
Simbhaoli Sugars Ltd, based in Uttar Pradesh, has been embroiled in financial troubles for years, with multiple banks reporting bad loans and alleged fund diversions. The company’s executives, including its chairman, managing director, and chief financial officer, were also named in the CBI’s 2018 FIR, alongside unknown bank officials and private individuals.
