New Delhi, January 16, 2026 — The Supreme Court on Friday dismissed a plea by Delhi High Court Judge Justice Yashwant Varma challenging the formation of a parliamentary inquiry committee, effectively clearing the decks for his impeachment over allegations of possessing unaccounted cash discovered during a fire at his official residence nearly a year ago. A bench comprising Justices Dipankar Datta and Satish Chandra Sharma ruled that the Lok Sabha Speaker's decision to constitute the probe panel was lawful, rejecting arguments that procedural lapses in the Rajya Sabha invalidated the process.
The verdict, delivered after hearings that began in December, marks a pivotal moment in one of the most high-profile judicial misconduct cases in recent Indian history. Justice Varma, who was transferred from the Delhi High Court to the Allahabad High Court following the incident, faces potential removal under Article 124(4) of the Constitution for "proved misbehavior or incapacity." The three-member parliamentary committee, headed by Supreme Court Judge Justice Aravind Kumar and including Madras High Court Chief Justice Manindra Mohan Shrivastava and senior advocate B.V. Acharya, will now proceed with its investigation into the corruption charges.
### The 'Cash-at-Home' Scandal: A Timeline of Events
The controversy erupted on March 14, 2025, when firefighters responding to a blaze at Justice Varma's official bungalow in New Delhi's upscale Lutyens' Bungalow Zone uncovered charred wads of currency notes amid the debris. Justice Varma and his wife were away on a trip to Madhya Pradesh at the time, leaving their daughter and elderly mother at home. Initial reports described "piles of burnt Rs 500 notes," though the exact value remains undisclosed amid ongoing probes. The judge has vehemently denied any wrongdoing, insisting no cash was recovered from his premises and attributing the findings to lapses by first responders who allegedly failed to secure the scene properly.
March 21, 2025: Then-Chief Justice of India Sanjiv Khanna initiates an in-house inquiry, appointing a three-member committee led by Punjab and Haryana High Court Chief Justice Sheel Nagu, alongside Himachal Pradesh High Court Chief Justice G.S. Sandhawalia and Karnataka High Court Justice Anu Sivaraman.
May 4, 2025: The committee indicts Justice Varma for misconduct, citing his inability to explain the cash's origins. He declines to resign, prompting the CJI to forward the report and his rebuttal to the President and Prime Minister.
August 12, 2025: Lok Sabha Speaker Om Birla admits a multi-party impeachment motion and forms the parliamentary inquiry committee. A parallel motion in the Rajya Sabha is rejected by Deputy Chairman Harivansh, sparking procedural disputes.
December 16, 2025: The Supreme Court agrees to examine Justice Varma's challenge, issuing notices to parliamentary officials.
January 8, 2026: The bench reserves its judgment following arguments from senior advocates representing the judge, including Mukul Rohatgi and Sidharth Luthra.
### Supreme Court's Reasoning: No Bar on Lok Sabha Proceedings
In a succinct operative order, Justice Datta declared, "We hold that the petitioner is not entitled to any relief in the present case," underscoring that the Judges (Inquiry) Act, 1968, does not mandate a joint committee when motions diverge between Houses. The bench dismissed claims that the Rajya Sabha's rejection rendered the Lok Sabha panel "non est" (non-existent) in law, noting no statutory prohibition prevents the Speaker from proceeding independently.
Solicitor General Tushar Mehta, defending the parliamentary process, argued that the Act balances judicial independence with accountability, warning that excluding the Deputy Chairman during a Chairman's absence would create "unfeasible" deadlocks. Justice Datta echoed this, remarking that "constitutional institutions could not remain inactive merely due to a temporary vacancy."
Justice Varma's counsel contended that parallel motions required unified action to avoid conflicting outcomes, but the Court found no "substantial prejudice" to warrant intervention. The judge, appearing before the parliamentary panel earlier this week, reiterated his innocence: "I wasn’t present when the fire took place. No cash was recovered from my residence. I have absolutely no role in this."
### Broader Implications and Road Ahead
The ruling has ignited debates on judicial accountability, with critics hailing it as a safeguard against impunity and supporters decrying it as a politicized witch hunt. Legal experts note that successful impeachments of judges are exceedingly rare—none since Justice V. Ramaswami's failed attempt in 1993—requiring a two-thirds majority in both Houses after the committee's adverse report.
With the probe now unhindered, Justice Varma must present his defense before the committee, whose findings could culminate in a full parliamentary vote as early as the Budget Session. The case underscores ongoing tensions between the judiciary's self-regulation mechanisms and Parliament's oversight powers, potentially setting precedents for future misconduct allegations.
This report is based on court documents, official statements, and coverage from Republic World, Times Now, and Law Chakra.
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