Justice Yashwant Varma resigns over cash controversy as impeachment pressure mounts

Justice Yashwant Varma of the Allahabad High Court has resigned, nearly a year after a controversy over alleged unaccounted cash found at his official residence in Delhi sparked a political and legal storm, marking a dramatic turn in one of the judiciary’s most high-profile crises.

His resignation has been sent to the President and comes at a time when impeachment proceedings were gathering pace, with over 140 Lok Sabha members backing a motion seeking his removal.

The controversy traces back to March last year, when a fire broke out at Justice Varma’s official residence in Delhi. During firefighting operations, stacks of cash — reportedly piled over 1.5 feet high — were said to have been discovered, triggering widespread outrage and demands for accountability.

In the aftermath, then Chief Justice of India Sanjiv Khanna ordered an in-house inquiry and transferred Justice Varma from the Delhi High Court to the Allahabad High Court. His judicial responsibilities were withdrawn pending investigation.

Justice Varma has consistently denied the allegations, asserting that no cash was recovered from his residence.

‘Why should I be impeached?’: Varma defends himself

Responding to a parliamentary panel, Justice Varma argued that he was not present at the residence when the fire broke out and was not among the first responders.

“Why should I be impeached if officials failed to secure the site... The police and fire department officials present failed to take action as required,” he said, according to sources.

He maintained that the premises were under the control of authorities at the time and questioned the basis for holding him accountable for any alleged lapses.

Probe panel and Supreme Court setback

In August 2025, Lok Sabha Speaker Om Birla constituted a three-member inquiry committee under the Judges (Inquiry) Act, 1968 to examine the charges.

The panel comprises Justice Aravind Ku

mar of the Supreme Court, Justice Maninder Mohan, Chief Justice of the Madras High Court, and senior advocate B V Acharaya.

Justice Varma challenged the validity of the panel before the Supreme Court, arguing that the motion seeking his removal had earlier been rejected by the Deputy Chairman of the Rajya Sabha. However, the apex court dismissed his plea, allowing the inquiry to proceed.

Inquiry findings tighten the noose

An earlier in-house panel, comprising Justice Sheel Nagu, Justice G.S. Sandhawalia and Justice Anu Sivaraman, found prima facie evidence suggesting that Justice Varma and his family had control over the room where the cash was allegedly discovered.

The report was subsequently forwarded to the President and the Prime Minister after Justice Varma declined to step down despite being advised to do so.

Impeachment process gathers pace

The controversy escalated further after 146 Lok Sabha members backed an impeachment motion, prompting the formation of a fresh three-member probe panel.

Under Articles 124 and 217 of the Constitution, a judge can be removed on grounds of “proved misbehavior” or “incapacity,” requiring a two-thirds majority in both Houses of Parliament—a threshold never successfully met in India’s history.

With the inquiry tightening and the threat of removal looming, Justice Varma’s resignation signals a pivotal moment in a case that has reignited debate over transparency and accountability within the higher judiciary.