Indian Justice Yashwant Varma Resigns Amid Cash-at-Home Scandal

India: Allahabad High Court judge Justice Yashwant Varma, at the centre of a major controversy over the discovery of large quantities of burnt currency notes at his official residence, has submitted his resignation to President Droupadi Murmu.

The development comes after the Supreme Court dismissed his challenges to the inquiry process, clearing the path for parliamentary impeachment proceedings that had gained cross-party support.

The scandal erupted in March 2025 when a fire broke out at Justice Varma’s official bungalow at 30 Tughlak Crescent in Delhi. Firefighters and police reportedly found sacks and piles of partially burnt currency notes, mostly in Rs.500 denominations, in a storeroom attached to the residence. Witnesses described seeing the cash, and some was allegedly removed in the immediate aftermath.

An in-house inquiry committee, set up by the then Chief Justice of India, examined the matter and concluded that Justice Varma or his family had control over the storeroom where the unaccounted cash was found. The panel held it as a case of serious misconduct and recommended his removal from office.

Justice Varma was transferred from the Delhi High Court to the Allahabad High Court and barred from performing any judicial work pending the probe. He consistently denied the allegations, claiming no cash was recovered in his or his family’s presence and that there was no proper seizure memo or evidence linking him to the money.

Following the in-house report, the Chief Justice forwarded the findings to the President and Prime Minister. A removal motion, supported by over 140 MPs from both ruling and opposition parties, was admitted in the Lok Sabha. Speaker Om Birla constituted a three-member parliamentary inquiry committee under the Judges (Inquiry) Act, 1968.

Justice Varma approached the Supreme Court multiple times, challenging the constitution of the panels and the procedures adopted. However, the apex court upheld the process, observing that constitutional safeguards for judges cannot paralyse accountability mechanisms. His pleas were dismissed in January 2026, paving the way for Parliament to proceed with impeachment.

With the parliamentary committee having examined the case and impeachment becoming imminent, resignation emerged as the only practical option left for Justice Varma. By resigning, he is expected to retain his pension and other retirement benefits as a High Court judge, which would have been forfeited in case of removal through impeachment.

The resignation marks a significant development in judicial accountability. The case witnessed rare bipartisan consensus on a judge’s removal motion and has sparked wider debates on transparency and oversight in the higher judiciary.

The President is likely to formally accept the resignation in due course. Justice Varma had earlier refused to step down voluntarily despite requests from the Chief Justice.