Cash Hoard Scandal: Lok Sabha Revamps Panel Probing Justice Varma's Impeachment

In a significant administrative move, the Lok Sabha Speaker has reconstituted the high-powered committee tasked with investigating corruption allegations against Justice Yashwant Varma of the Allahabad High Court. The update, published in the Gazette of India on February 25, 2026, replaces retiring Madras High Court Chief Justice Maninder Mohan Shrivastava with Bombay High Court Chief Justice Shree Chandrashekhar, effective March 6, 2026. Justices Aravind Kumar (Supreme Court) and senior advocate B.V. Acharya remain.

This stems from a dramatic incident last year that rocked the judiciary.

The Spark: A Fire Reveals Hidden Wealth

It all began on March 14, 2025, during a fire-fighting operation at an outhouse of Justice Varma's official residence in Delhi High Court premises. Firefighters stumbled upon a huge pile of currency notes , igniting a massive public controversy. At the time, Justice Varma was a Delhi High Court judge.

Then-Chief Justice of India Sanjiv Khanna swiftly formed an in-house inquiry committee comprising Justices Sheel Nagu (Punjab & Haryana HC CJ), G.S. Sandhawalia (Himachal Pradesh HC CJ), and Anu Sivaraman (Karnataka HC judge). The panel's May 2025 report found prima facie culpability against Justice Varma. Despite CJI Khanna's advice to resign, Varma refused, prompting the report's forwarding to the President and Prime Minister.

Justice Varma was promptly repatriated to Allahabad High Court with all judicial work withdrawn pending inquiry.

From Probe to Parliament: Impeachment Motion

The scandal escalated when 146 Lok Sabha MPs moved a motion under the Judges (Inquiry) Act, 1968 , leading to the original committee's formation on August 12, 2025, via Section 3(2). Justice Varma challenged its legality in the Supreme Court, but the court repelled his plea . He also contested the in-house inquiry and CJI's removal recommendation—another dismissal.

Now, with Justice Shrivastava's retirement on March 5, 2026, the Speaker issued S.O. 1012(E) , partially modifying the August notification: "the Speaker, Lok Sabha, has reconstituted... a Committee consisting of the following three Members..."

No Room for Legal Challenges: SC Stands Firm

Justice Varma's Supreme Court bids to halt the processes failed, underscoring the robustness of judicial self-regulation and parliamentary oversight mechanisms. The reconstitution ensures continuity, with the Supreme Court judge as chairperson.

Key Observations from the Notification

  • Core Mandate : "for the purpose of making an investigation into the grounds on which the removal of Justice Yashwant Varma of the Allahabad High Court is prayed for."
  • Partial Modification : "In partial modification of the Notification of even No. dated the 12th August, 2025, under sub-section (2) of Section 3 of the Judges (Inquiry) Act, 1968..."
  • Effective Date : Reconstitution "with effect from the 6th March, 2026." *

Path Ahead: Implications for Judicial Integrity

The revamped panel—chaired by Justice Aravind Kumar, with Justices Shree Chandrashekhar and B.V. Acharya—will now probe deeper into the allegations. A finding of "proved misbehaviour or incapacity" could recommend impeachment, requiring a two-thirds majority in Parliament.

This case highlights the Judges (Inquiry) Act's role in upholding accountability while protecting judicial independence. For Justice Varma, sidelined since March 2025, the outcome could redefine his career. For the judiciary, it's a test of handling internal scandals transparently amid public scrutiny.

Stay tuned as the inquiry unfolds—could this be the first successful impeachment in decades?