A fire at Delhi High Court Judge Yashwant Varma’s residence led to an unexpected discovery. Firefighters found a large sum of cash while extinguishing the blaze. They immediately informed the authorities, triggering a nationwide debate. Justice Varma was reportedly out of town when the incident occurred. His family had called the fire brigade and the police for help.

The discovery of a large stash of cash at Delhi High Court Justice Yashwant Varma’s residence has revived interest in the 2018 Simbhaoli Sugar Mill fraud case. This financial scandal had faded from public attention, but now, Justice Varma—who had maintained a spotless 22-year career—faces scrutiny after authorities reportedly found the cash following a fire at his official residence.

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Fresh Questions About Financial Dealings

This incident has raised concerns about his financial history, especially his past ties to Simbhaoli Sugars Limited. The company allegedly orchestrated a multi-crore banking fraud. According to India Today that the CBI registered an FIR against 12 individuals, listing Yashwant Varma as the tenth accused. He served as a Non-Executive Director of the company. Despite serious allegations, the case stalled, and authorities took no legal action against him or others involved.

The 2018 Simbhaoli Sugar Mill Fraud

The fraud case began in February 2018 when the CBI launched an investigation based on a complaint from the Oriental Bank of Commerce. The bank accused Simbhaoli Sugars of misusing a ₹97.85 crore loan meant for farmers. Instead of reaching its intended recipients, the funds were allegedly diverted for other purposes. By May 2015, officials had already flagged the case as a ‘suspected fraud’ and reported it to the Reserve Bank of India (RBI).

Probe Halted, Then Shut Down

In February 2024, a court ordered the CBI to resume its stalled investigation. However, before any progress could be made, the Supreme Court overturned this directive. The ruling led to the immediate closure of the CBI’s Preliminary Enquiry (PE), shutting down any further probe into Simbhaoli Sugars and its directors.

Supreme Court Orders Urgent Probe

The local police documented the cash recovery and alerted senior officials. The matter soon reached Chief Justice of India (CJI) Sanjiv Khanna. He quickly convened a collegium meeting to assess the situation. The Supreme Court directed the Delhi High Court Chief Justice to submit a detailed probe report. Sources confirmed that the report has been submitted for review.

Decision on Justice Varma’s Future

The Supreme Court follows a strict in-house procedure to handle allegations against judges. If the Delhi HC report clears Justice Varma, the case may be closed. However, if he faces indictment, the CJI-led collegium can ask for his resignation.

If he refuses to step down, the CJI may form a three-member inquiry panel. This panel would include a sitting Supreme Court judge and two high court chief justices. The CJI can then request the central government to initiate impeachment under Article 218.

Impeachment Process Explained

A sitting judge can only be removed through a parliamentary motion. The process follows Article 124 for Supreme Court judges and Article 218 for high court judges. Parliament must find the judge guilty of ‘proven misbehavior or incapacity’ before removal.

Justice Varma’s Transfer Unrelated

Meanwhile, the Supreme Court clarified that Justice Varma’s proposed transfer to the Allahabad High Court is separate from the cash recovery probe. The collegium had reviewed his transfer on March 20, 2025. It had also consulted other Supreme Court and high court judges. The final decision on his transfer will follow after examining all responses.

Now, the recent cash recovery at Justice Varma’s residence has reignited concerns. His financial background and alleged role in the Simbhaoli Sugars case are once again under intense public and legal scrutiny. The investigation into the cash recovery remains ongoing. The Supreme Court collegium will determine the next steps based on the probe findings.