Delhi High Court judge Justice Yashwant Varma who is facing an investigation after a huge amount of unaccounted cash was recovered from his residence during a fire incident on 14th March was reportedly an accused in the Simbhaoli Sugar Mill fraud case.
As per reports, Justice Varma was named in an FIR filed by the Central Bureau of Investigation (CBI) under the Prevention of Corruption Act and an ECIR filled by the Enforcement Directorate under the Prevention of Money Laundering Act in an alleged fraud committed by Simbhaoli Sugars Ltd. on banks. Before his elevation as a judge to the Allahabad High Court in October 2013, Justice Varma was a non-executive director of the company. The company’s accounts were reported as a non-performing asset (NPA) in 2012. By 2015, the Sambhaoli Sugars case was declared a ‘suspected fraud’ case and was reported to the Reserve Bank of India (RBI).
An investigation was launched by the CBI in February 2018 against Sambhaioli Sugars based on a complaint filed by the Oriental Bank of Commerce. The bank had accused the company of misappropriating ₹97.85 crore of loan amount which was supposed to go to farmers. The company allegedly diverted the funds for other purposes. The CBI FIR mentioned the names of 12 accused including the name of Justice Varma as a non-executive director of the company.
However, the investigation in the case stalled and no significant action was taken in the case for a long time. In February 2024, the case was reignited after a court ordered the CBI to resume the investigation. However, the court order was overturned by the Supreme Court leading to the closure of the CBI’s preliminary inquiry (PE) in the case. The Supreme Court’s intervention effectively put an end to all investigations in the case raising questions on how high-profile corruption cases involving people occupying important positions were dealt with by the Indian judiciary.
The Cash Controversy
Around 4-5 half-burnt sacks containing remnants of Indian currency notes were found at Justice Varma’s official bungalow at 30 Tughlak Crescent, New Delhi on 14th March after a fire incident. Following the incident, a three-member committee was formed by the Supreme Court chaired by Justice Sheel Nagu, Chief Justice of the Punjab and Haryana High Court, alongside Justice GS Sandhawalia of the Himachal Pradesh High Court and Justice Anu Sivaraman of the Karnataka High Court. The committee will investigate the allegations and submit a report to the Chief Justice of India, Sanjiv Khanna. Justice Varma was initially transferred to the Allahabad High Court, but following backlash, he was barred from performing any judicial duties. The Chief Justice of the Delhi High Court has been instructed not to assign him any work pending the probe.
Justice Varma, on the other hand, denied all allegations against him and said he did not have any knowledge about the cash found in his bungalow. He was in Madhya Pradesh with his wife when the incident took place and returned to Delhi on the evening of 15th March. On 17th March, he met Justice Upadhyaya at the Delhi High Court Guest House at 8:30 AM. When he was shown the photographs and video reportedly depicting burnt currency, Justice Varma insisted that he had no knowledge of any cash in the storeroom.
