Fire, Cash, and a Judge in the Dock

By Sanjay Raman Sinha

A late-night fire at Delhi High Court Judge Justice Yashwant Varma’s residence has sparked a judicial firestorm. While the flames were doused, they exposed something far more incendiary—allegations of corruption, missing sacks of cash, and a high-stakes power struggle within India’s judiciary.

The March 14 blaze in Justice Varma’s official residence led to a shocking discovery: allegedly, sacks of burnt cash. But in a bizarre twist, this critical evidence vanished before an official seizure could take place. Now, with the judiciary reeling and the government circling, serious questions loom over judicial integrity, political manoeuvring, and the fight for control within the corridors of power.

The Vanishing Cash: A Scandal In The Making

Justice Varma was not in town when the fire broke out, yet the controversy has engulfed him. As firefighters tackled the blaze, they reportedly stumbled upon half-burnt stacks of currency in an outhouse. A video allegedly documenting the discovery surfaced, yet when officials formally inspected the site, no cash was found. The incident has since led to an internal probe, a judicial transfer, and renewed calls for accountability within the judiciary.

The mystery deepened when Chief Jus­tice of India (CJI) Sanjiv Khanna sought a report from the Delhi High Court Chief Justice Devendra Kumar Upadhyaya. However, the official report made no mention of any recovered cash. Meanwhile, the Delhi Police Commissioner’s report included video evidence of the charred notes—an apparent contradiction that raises more questions than answers.

Justice Varma himself has categorically denied the existence of any cash. His response: “What baffles me is the complete absence of any sacks of allegedly burnt currency which were ever recovered or seized. My staff was never shown any such evidence.”

Judicial Fallout: A Transfer That Raises Eyebrows

As the scandal brewed, the Supreme Court Collegium quickly transferred Justice Varma to the Allahabad High Court—his parent court—where he would rank ninth in seniority. Officially, the transfer was labelled as “independent and separate” from the investigation, but the timing raises obvious suspicions.

The move met fierce resistance from the Allahabad High Court Bar Association, which lambasted the transfer, stating: “The Allahabad High Court is not a trash bin.”

With mounting pressure, the Supreme Court took damage control measures, forming a three-member committee to investigate the allegations. Meanwhile, Justice Varma was stripped of his judicial duties until further notice.

The Politics Of The Judiciary: A System Under Siege

Beyond the immediate scandal, the incident has exposed deeper rifts within the judiciary. Sources suggest a power struggle within the Delhi High Court Collegium, with factions vying for control. The Punjabi-dominated judicial circles, reportedly unhappy with Uttar Pradesh’s influence in the Collegium, may have played a role in Justice Varma’s ousting.

There are also whispers of high-level corruption. Judicial power brokers allegedly wield influence over lucrative intellectual property rights (IPR) cases, and some even claim that ill-gotten wealth is funnelled into foreign properties and businesses. An example frequently cited is “Daftaar,” a Dubai-based restaurant reportedly owned by a judge’s relative.

Sources aver that Justice Varma was the proverbial thorn in the flesh for power brokers. Even though the origins of the money are yet uncertain, its presence has brought disrepute to his career.

A Bigger Crisis: The Future Of Judicial Appointments

This episode is more than just a scandal—it has reignited the debate over judicial transparency and the National Judicial Appoint­ments Commission (NJAC). With the judiciary on the back foot, the government sees an opportunity to push for greater oversight on judicial appointments. The NJAC debate is back on the table, and the ruling party may leverage this crisis to push reforms that increase executive influence over judicial selections.

The government must resist the temptation of one-upmanship. Instead, it should act as a stakeholder in cleansing the system.

The Burning Questions

• Where is the missing cash? Firefighters, police, and video footage suggest it was there—but official reports deny it.
• Who had access to the storeroom? The sealed room was later opened for investigation, but crucial forensic evidence was lost.
• Was the transfer of Justice Varma retaliation or routine? The judiciary claims it was independent, but the timing says otherwise.
• Is this part of a larger judicial power struggle? Allegations of lobbying, corruption, and political interference suggest deeper fault lines.

As the judicial probe unfolds, this case is poised to expose uncomfortable truths about India’s judiciary. With political and legal stakes higher than ever, the answers—or lack thereof—could reshape the power dynamics of the nation’s judicial system for years to come.

This is a crisis that won’t die down soon. As the investigation unfolds, the credibility of India’s judiciary hangs in the balance.

Judiciary Under The Scanner   

• Justice V Ramaswami was accused of misusing government funds while he was the chief justice of the Punjab and Haryana High Court. He was the first Supreme Court judge against whom im­peachment was brought. As the pressure increased, Ramaswami resigned in 1994.
• In 2009, Justice Nirmal Yadav, a judge of the Punjab and Haryana High Court, was accused of taking a bribe of Rs 15 lakh.
• Madras High Court Chief Justice PD Dhinakaran was accused of illegal land acquisition and wealth accumulation in Tamil Nadu. He resigned in 2011 under pressure of the investigation.
• In 2017, Calcutta High Court judge Justice CS Karnan made serious allegations of corruption against several Supreme Court judges. A contempt case was filed against him, and he was jailed for six months.
• In 2018, four senior judges of the Supreme Court held a press conference and accused then Chief Justice of India Dipak Misra of arbitrarily distributing cases and promoting corruption.
• In 2021, a retired judge of the Bombay High Court was accused of giving decisions after taking bribe, although the case was shelved due to lack of investigation.
• In January 2025, the ED conducted searches on the premises of Railway Claims Tribunal judge RK Mittal in Patna and his associates in a case of Rs 50 crore fraudulent withdrawal of death compensations. The ED in March attached 24 properties belonging to the accused.
• On August 10, 2023, the ED arrested Panchkula’s former special court judge Sudhir Parmar in connection with alleged bribery and favouring in money laundering case against real estate developer IREO and its promoter Lalit Goyal
• In the Chhattisgarh PDS scam, the ED came across evidence of alleged liaisoning between two senior IAS officers who were accused in the case and a judge of the Chhattisgarh High Court influencing the trial. The ED brought the issue to the notice of the Supreme Court, which transferred the judge in question to Patna High Court.

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