Delhi High Court Judge Cash Scandal: Justice Yashwant Varma, a current judge of Delhi High Court, is being investigated following a big stash of unaccounted-for cash reportedly recovered at his government residence in Delhi on March 14. The development has led to renewed focus on his role in a 2018 Central Bureau of Investigation (CBI) case associated with a gigantic bank fraud.
CBI FIR in Simbhaoli Sugar Mills Case
Justice Varma was mentioned in a CBI FIR in 2018 in the case of Simbhaoli Sugar Mills, where he was a non-executive director. The case was based on a complaint by the Oriental Bank of Commerce (OBC), which alleged that the company had diverted a loan scheme for farmers.
In January and March 2012, OBC’s Hapur branch disbursed Rs 148.59 crore to 5,762 farmers to buy fertilizers and seeds. The money was supposed to pass through an escrow account and then on to farmers’ personal accounts, with Simbhaoli Sugar Mills as the guarantor. The company is accused of having provided fake Know Your Customer (KYC) documents and misappropriating funds. By 2015, the loan had been deemed fraudulent, resulting in a total loss of Rs 97.85 crore and an outstanding figure of Rs 109.08 crore.
One of the others included in the FIR was Gurpal Singh, who was the then deputy managing director of Simbhaoli Sugar Mills and son-in-law of former Punjab Chief Minister Amarinder Singh. The Enforcement Directorate (ED) later initiated a money laundering investigation into the matter.
Fresh CBI Investigation Ordered
In December 2023, the Allahabad High Court ordered the CBI to re-examine its probe into several banks that had extended loans to Simbhaoli Sugar Mills. The court observed that the fraud, which involved loans of Rs 900 crore, raised serious concerns regarding collusion between the bank staff and the company.
The CBI’s fresh investigation in February 2024 aimed to find out why banks kept on lending credit to Simbhaoli Sugar Mills from 2009 to 2017 even when it was in default. The Supreme Court subsequently put on hold the Allahabad High Court’s order in March 2024.
Fire at Justice Varma’s Residence
On March 14, a blaze erupted in the storeroom of Justice Varma’s Lutyens Delhi home. Firefighters arrived at 11:43 pm, allegedly finding huge amounts of money among charred jute bags. Although no FIR was officially filed, videos of the incident were presented to top Delhi Police officials, resulting in an inquiry directed by the Chief Justice of India (CJI). Rs 15 crore in cash has been recovered, according to reports.
Judiciary’s Reaction and Aftermath
The Supreme Court Collegium, under the chairmanship of Chief Justice of India Sanjiv Khanna, later recommended that Justice Varma be transferred back to the Allahabad High Court following the incident. Although couched as an administrative action, the decision is reported to be an initial step awaiting further investigation.
Justice Varma did not conduct court hearings the next day, having apparently gone on leave. In judicial circles, demands for a stronger action have been raised, with some demanding an internal inquiry that could result in his removal through parliamentary proceedings if there is proven misconduct.
Legal and Public Debate
Delhi High Court Chief Justice DK Upadhyaya conceded that the incident has unnerved the judiciary, while senior counsel Kapil Sibal stressed the necessity of more openness regarding judicial appointments to avoid corruption.
Former Solicitor General Harish Salve, on the other hand, cast suspicion on the allegations on the basis of contradictory reports. Delhi Fire Chief Atul Garg said no money was discovered at the scene, contrary to reports made by police sources.
“If no money was recovered, why is there a question mark? If the charges are not true, it is not proper to shift Justice Varma. But if they are true, a transfer will not do,” Mr. Salve told NDTV in an exclusive interview.
He also opined that an independent committee be made to supervise the probe so that credibility and impartiality are not lost in the process.
Uncertain Future
While the investigation is pending, the case has brought a shadow over the judiciary with serious questions about corruption and accountability at the top. The result of the investigation will ascertain whether Justice Varma is subjected to further legal or disciplinary proceedings. source ndtv.com
For more exciting updates, subscribe to Apexadpros and follow us on Instagram for regular insights!
