The in-house inquiry into Delhi High Court judge Justice Yashwant Varma has reached a pivotal second stage, following the discovery of "four to five semi-burnt sacks" of currency notes after a fire at his Lutyens’ Delhi residence on March 14, 2025.

Chief Justice of India Sanjiv Khanna has formed a three-member panel—comprising Justices Sheel Nagu, G S Sandhawalia, and Anu Sivaraman—to investigate, after Delhi High Court Chief Justice Devendra Kumar Upadhyaya’s March 21 report called for a deeper probe.

The inquiry follows the Supreme Court’s 2014 guidelines for probing misconduct by high court judges. The first stage, completed by Justice Upadhyaya, assessed the allegations’ prima facie veracity, prompting this escalated investigation.

The second stage, overseen by the CJI, involves a thorough probe by the panel, adhering to natural justice principles. No timeline has been set for its conclusions.

The panel’s findings could range from dismissing the allegations to recommending serious action. If misconduct is proven and deemed grave, the CJI may advise Justice Varma to resign or retire voluntarily. Non-compliance could lead to judicial work being withheld and, ultimately, a recommendation to the President and Prime Minister for removal proceedings.

Justice Upadhyaya’s report, citing a short-circuit as the likely fire cause, included evidence of burnt cash found by firefighters. Justice Varma has denied the allegations, insisting no cash was stored by him or his family.

With judicial work already paused for Varma, the probe’s outcome could have far-reaching consequences.