Supreme Court Dismisses Justice Yashwant Varma’s Petition Challenging In-House Inquiry Report

New Delhi: The Supreme Court today dismissed the writ petition filed by Allahabad High Court Judge Justice Yashwant Varma, which challenged the in-house inquiry report indicting him in the case-at-home scandal. The petition had also contested the recommendation made by then Chief Justice of India Sanjiv Khanna to the President and the Prime Minister for his removal.

A bench of Justice Dipankar Datta and Justice A.G. Masih, which had reserved its verdict on July 30, delivered the judgment today.

The Supreme Court, while dismissing the writ petition filed by Justice Yashwant Varma, stated: “We have held that CJI and the in-house committee had scrupulously followed the process except uploading photos and video and we have said it was not required. But nothing turned on it because you did not challenge it then. We have held that CJI sending letter to the Prime Minister and President was not unconstitutional. We have made certain observations where we have kept it open for you to raise proceedings if needed in the future. With this we have dismissed the writ petition.”

What Justice Varma Stated in His Petition

In his petition, Justice Varma had sought a declaration that the recommendation by former CJI Khanna for his removal from office be declared unconstitutional and ultra vires. He also contested the in-house committee’s report, which had formed the basis of the removal recommendation.

Justice Varma argued that the in-house inquiry was initiated without any formal complaint and criticised the Supreme Court’s decision to publicise the allegations through a press release, which he claimed subjected him to an “unprecedented” media trial.

Background of the Case and Allegations

The controversy dates back to March 14, when a fire broke out at Justice Varma's residence. During the firefighting operation, personnel reportedly discovered a large amount of unaccounted cash. A video later surfaced showing bundles of cash burning in the blaze. Following the incident, allegations of corruption were levelled against Justice Varma, who denied any wrongdoing and claimed it was a conspiracy to frame him.

On March 22, then CJI Khanna initiated an in-house probe and constituted a three-member inquiry panel to investigate the matter. Subsequently, Justice Varma was sent back to his parent High Court in Allahabad, where he recently took oath again, though his judicial work was withheld on the CJI’s instructions.

The inquiry panel comprised Punjab and Haryana High Court Chief Justice Sheel Nagu, Himachal Pradesh High Court Chief Justice GS Sandhawalia, and Karnataka High Court Justice Anu Sivaraman. The committee began its investigation on March 25 and submitted its final report on May 3. The report was placed before the CJI on May 4.

Upon receiving the report that indicted Justice Varma, CJI Khanna forwarded it to the President of India along with a recommendation for the judge’s removal.

In his plea, Justice Varma argued that invoking the in-house procedure without a formal complaint rendered the process improper and invalid. He also claimed the committee's proceedings violated principles of natural justice by failing to inform him of the procedure it intended to follow and denying him the opportunity to respond to evidence.

Regarding the cash discovery, the plea stressed the need to identify its ownership and quantify the amount recovered, details which, according to him, were missing in the panel’s report.

Justice Varma further alleged that CJI Khanna had asked him to resign or seek voluntary retirement within an “unduly restricted timeline.”