Delhi High Court Judge Yashwant Varma has become the center of a major controversy after unaccounted cash was allegedly found at his residence. The incident has triggered fresh scrutiny into his past, as he was previously named in a 2018 CBI FIR related to a sugar mill bank fraud case.
In 2018, the Central Bureau of Investigation (CBI) filed an FIR against Simbhaoli Sugar Mills, its directors, and others, including Yashwant Varma, who was a non-executive director at the time. The case stemmed from a complaint by the Oriental Bank of Commerce (OBC), which accused the company of orchestrating a fraudulent loan scheme. According to the complaint, OBC disbursed Rs 148.59 crore between January and March 2012 to 5,762 farmers for agricultural inputs. The funds were meant to be transferred to an escrow account before reaching the farmers, with Simbhaoli Sugar Mills guaranteeing repayment. However, the company allegedly submitted falsified KYC documents and misappropriated the funds. By 2015, OBC declared the loan a fraud, citing losses of Rs 97.85 crore and an outstanding sum of Rs 109.08 crore.
Among those named in the FIR was Gurpal Singh, the company’s deputy managing director and the son-in-law of former Punjab Chief Minister Amarinder Singh. The Enforcement Directorate (ED) subsequently launched a money laundering investigation based on the CBI FIR.
In December 2023, the Allahabad High Court ordered a fresh CBI investigation into seven banks linked to the loan disbursement, stating that the fraud had “shaken the conscience” of the judiciary. The court pointed to potential collusion between bank officials and Simbhaoli Sugar Mills in approving Rs 900 crore in loans. In February 2024, acting on the Allahabad High Court’s directive, the CBI initiated a new probe into why banks continued to extend loans to the company despite its history of defaults.
On March 14, a fire broke out at Justice Yashwant Varma’s official residence in Lutyens’ Delhi. Firefighters reportedly discovered cash scattered among burnt jute sacks, amounting to approximately Rs 15 crore. Though no FIR was filed, videos of the cash were recorded and shared with senior Delhi Police officials, leading to a judicial inquiry. The Supreme Court Collegium subsequently transferred Justice Yashwant Varma back to the Allahabad High Court, describing it as only the “first step” in an ongoing investigation.
Delhi High Court Chief Justice DK Upadhyaya expressed deep concern over the matter, calling it “demoralizing” for the judiciary. Senior advocate Kapil Sibal emphasized the need for greater transparency in judicial appointments, while former Solicitor General Harish Salve questioned the conflicting reports about the cash recovery. With doubts over the allegations and the credibility of the inquiry, legal experts are calling for an independent panel to ensure an impartial investigation.
