Cash row: Probe panel confirms allegations against Justice Varma, CJI seeks his reply

CJI forwards panel report on Justice Varma's cash discovery, seeks reply; potential nudging for resignation.

The Supreme Court-appointed panel has confirmed the cash discovery allegations against Allahabad High Court's Justice Yashwant Varma in its inquiry report, sources have said. Chief Justice of India Sanjiv Khanna is also learnt to have nudged the judge to step down in view of the critical findings in the report.

The CJI has forwarded the panel's report to Justice Varma and sought his reply following the principle of natural justice, the sources said.

The report was submitted to the CJI by the three-member panel comprising Punjab and Haryana High Court Chief Justice Sheel Nagu, Himachal Pradesh High Court Chief Justice G. S. Sandhawalia and Justice Anu Sivaraman of the Karnataka High Court. It was finalised on May 3.

The panel analysed evidence and recorded the statements of over 50 people, including Delhi Police Commissioner Sanjay Arora and Delhi Fire Service chief who were among the first responders to the fire incident at Justice Varma's Lutyens Delhi residence at around 11.35 p.m. on March 14. He was Delhi High Court judge at the time.

Sources said the panel found clear evidence to confirm the allegations that a huge stash of cash was found in the storeroom of Justice Varma's official residence at the time of fire incident. The allegation was repeatedly denied by the judge in his reply to the Delhi High Court chief justice.

The sources said CJI Khanna, who is set to superannuate on May 13, is likely to take the issue to its logical conclusion and has informally discussed the findings of the report with senior collegium members of the apex court.

The controversy was raised following a news report in the cash discovery row and led to several steps, including a preliminary inquiry by Delhi High Court Chief Justice D. K. Upadhyaya, judicial work being taken away from Justice Varma in the Delhi High Court, and later his transfer to the Allahabad High Court sans judicial work.