A high-level judicial panel has released its inquiry report regarding a fire that occurred at the residence of Justice Yashwant Varma on March 14, 2025. The report details the discovery of burnt, unexplained cash at the scene, intensifying concerns about potential judicial misconduct. The fire, which broke out at approximately 11:35 PM at Justice Varma's official residence on Tughlak Crescent in New Delhi, prompted the formation of a three-judge panel to investigate allegations that have cast a shadow over the higher judiciary.

According to the inquiry, firefighters reported that the blaze was fueled by alcohol emanating from a liquor cabinet situated near the storeroom. It was in this storeroom that currency notes were found amidst the debris. Justice Varma was reportedly away from the residence when the incident occurred. The panel's investigation involved examining at least 55 witnesses, and the panel visited the site.

The panel's report highlights that "cash/money was found in the store room" of the residence occupied by Justice Varma. The report further asserts that access to the storeroom was under the "covert or active control" of Justice Varma and his family members. The panel inferred that the burnt cash was removed from the storeroom in the early hours of March 15, 2025. The panel's recommendation stated that there was sufficient substance in the allegations raised in a letter from the Chief Justice of India dated March 22, 2025, and that the misconduct found was serious enough to call for the initiation of proceedings for the removal of Justice Yashwant Varma from his position as a Judge of the Allahabad High Court.

Adding to the gravity of the situation, the panel noted that no attempt was made by Justice Varma or any member of his household to report the incident or secure CCTV footage immediately. This, according to the panel, further undermined Justice Varma's claims.

In response to the allegations, Justice Varma has stated that his staff did not see any remnants of cash when they assessed the scene after the fire was extinguished. He also suggested that the incident appeared to be a conspiracy to frame and malign him. He questioned the absence of any recovered or seized sacks of burnt currency and asserted that neither his daughter, personal secretary, nor household staff were shown any such items.

Senior Advocate Kapil Sibal has defended Justice Varma, describing him as "one of the finest judges" he has encountered. Sibal criticized the Delhi Police's handling of the fire, pointing out their failure to file a First Information Report (FIR), prepare a seizure memo, or cordon off the scene. Sibal alleged that the case was being used to discredit an honest judge.

Former Chief Justice of India Sanjiv Khanna has reportedly written to President Droupadi Murmu and Prime Minister Narendra Modi, recommending Justice Varma's impeachment based on the inquiry panel's report.