What’s the 2018 Sugar Mill Fraud Case Linked to Cash Scandal Accused Judge Yashwant Varma?

New Delhi: Delhi High Court judge Justice Yashwant Varma has found himself at the center of a major controversy after a massive stash of unaccounted cash was recovered from his official residence in Delhi.

However, this is not the first time Justice Varma has been embroiled in controversy. In 2018, he was also named in connection with a financial scandal—the Simbhaoli Sugar Mills bank fraud case.

Also Read: All About Justice Yashwant Varma And The Controversy That’s Making Headlines

What Was the Case About?

The CBI launched an investigation into Simbhaoli Sugars, a company implicated in a multi-crore banking fraud in 2018. The probe began after a complaint from the Oriental Bank of Commerce.

Varma was a non-executive director of Simbhaoli Sugars and was listed as accused number 10 in the FIR regarding a ₹97.85 crore loan from the Oriental Bank of Commerce, which was originally intended for farmers.

Reports suggest that the company embezzled ₹1,300 crore in collusion with officials from seven banks. The bank alleged that the loan, meant to support farmers with agricultural equipment and other needs, was instead misappropriated, with funds being transferred to other accounts for unrelated purposes.

Simbhaoli Sugars was flagged as a “suspected fraud” case by May 2015 and was even reported to the Reserve Bank of India (RBI). The company’s account had already been declared a non-performing asset in 2012.

In 2024, a court ordered the CBI to resume the probe. However, the Supreme Court later overturned this directive and closed the CBI’s Preliminary Enquiry (PE).

The recent recovery of unaccounted cash has reignited discussions surrounding the 2018 case.