Justice Verma’s cash controversy rocks the Judiciary

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© Delhi High Court

A seismic scandal has erupted within India’s judicial system, centered on Delhi High Court Justice Yashwant Verma after a significant amount of unaccounted cash was discovered at his official residence. The incident, which unfolded over the past week, has triggered an internal probe, a proposed transfer, and a fierce debate about integrity in the judiciary.

What is Justice Verma’s cash controversy?

The controversy began on March 14, during the Holi weekend, when a fire broke out at Justice Verma’s government-allotted bungalow in Lutyens’ Delhi. 

With the judge and his wife away in Bhopal, family members summoned the fire brigade. As firefighters extinguished the blaze, they stumbled upon an astonishing sight: sacks of cash, some partially burnt, stashed in a storeroom. The discovery prompted immediate police involvement, and images of the charred currency soon reached the desk of Chief Justice of India (CJI) Sanjiv Khanna via Delhi’s Police Commissioner.

The exact amount remains undisclosed, but sources describe it as substantial, raising immediate questions about its origins and purpose. Justice Verma, a respected figure with a 22-year legal career, now finds himself at the heart of an unfolding crisis that threatens to tarnish the judiciary’s reputation.

Swift judicial response

On March 20, the Supreme Court Collegium, led by CJI Khanna, convened to address the situation. The five-member panel, which oversees judicial appointments and transfers, proposed shifting Justice Verma back to his parent court, the Allahabad High Court, where he served until 2021. 

The decision, however, was framed as routine and unrelated to the cash found, with the Supreme Court issuing a statement on March 21 clarifying that ‘misinformation and rumors’ linking the transfer to the incident were baseless.

Concurrently, Delhi High Court Chief Justice DK Upadhyaya launched an in-house inquiry, submitting a preliminary report to the CJI on March 21. The report, described as warranting deeper investigation, prompted the Supreme Court to escalate the matter. 

On March 22, a full bench of Supreme Court judges met, approving a formal internal probe into Justice Verma’s conduct. This inquiry, guided by a 1999 protocol for addressing judicial misconduct, could lead to calls for his resignation or even impeachment if evidence of wrongdoing is substantiated.

Verma’s Defense

Justice Verma, who has not held court since the scandal broke and is currently on leave, issued a response to the allegations on March 22. 

In a letter to Chief Justice Upadhyaya, he denied any knowledge of the cash, asserting that the storeroom where it was found was not part of his living quarters but a general dumping area accessible to staff, gardeners, and maintenance workers. ‘Neither I nor my family placed any money there,’ he wrote, labeling the accusations a conspiracy to frame and malign him.

He further questioned the evidence, noting that no cash was shown to his staff at the scene and that the video of burnt notes—released by police—lacked context to prove ownership. Justice Verma’s supporters within the legal community argue that the lack of concrete proof and his distinguished record should weigh in his favor until the investigation concludes.

The backlash

The incident has ignited a firestorm beyond the judiciary. 

Congress spokesperson Pawan Khera demanded transparency on March 21, asking, ‘Whose money was it, and why was it given to the judge?.’

He pointed to Justice Verma’s past rulings, including one on the Unnao rape case, to underscore the gravity of the situation. The opposition has also taken jabs at the government, with Khera quipping that the fire brigade outperformed agencies like the Enforcement Directorate in uncovering corruption.

Meanwhile, the Allahabad High Court Bar Association has fiercely opposed Verma’s proposed transfer, with President Anil Tiwari declaring on March 22 that their court is not a dumping ground for accused judges.

The bar’s stance reflects broader unease about the judiciary’s handling of the affair.

Public reaction, gauged from social media sentiment, is equally charged. Some pointed out that the scandal is evidence of systemic rot, while others cautioned against rushing to judgment, citing Verma’s long tenure and the possibility of a setup.

A career under scrutiny

Born in 1969 in Allahabad, Justice Verma rose through the legal ranks after earning degrees from Delhi University and Rewa University.

Enrolled as an advocate in 1992, he specialized in constitutional and taxation law before his elevation to the Allahabad High Court in 2014 and transfer to Delhi in 2021. His judicial record includes high-profile decisions, such as dismissing a Congress petition against tax reassessments in 2024 and upholding free speech in a Netflix series dispute.

Yet, the cash controversy has dredged up past scrutiny, notably his listing as an accused in a 2018 CBI probe into the Simbhaoli Sugars fraud case, where he served as a non-executive director before joining the bench. Though the Supreme Court quashed that investigation in 2023, the association has fueled speculation about his financial dealings.

What lies ahead

As of March 23, the internal probe is underway, with the CJI expected to decide soon on forming a three-member panel—comprising two high court chief justices and a Supreme Court judge—to deepen the investigation. Under India’s judicial framework, a guilty finding could lead to Justice Verma being asked to step down voluntarily; refusal could trigger impeachment proceedings in Parliament, a rare and drastic step.