Supreme Court Upholds Lok Sabha Speaker’s Decision to Form Inquiry Committee Against Justice Yashwant Varma in Burnt Cash Controversy

Date:

New Delhi: In a landmark ruling that reinforces the balance between judicial independence and parliamentary accountability, the Supreme Court of India on January 16, 2026, dismissed a petition filed by Allahabad High Court judge Justice Yashwant Varma. The judge had challenged the constitutionality of an inquiry committee set up by the Lok Sabha Speaker to probe allegations of misconduct linked to the discovery of burnt currency notes at his official residence in Delhi in March 2025.

A bench comprising Justices Dipankar Datta and S C Sharma held that the Lok Sabha Speaker committed “no illegality” in forming the three-member committee under the Judges (Inquiry) Act, 1968. The court emphatically stated that Justice Varma “is not entitled to any relief” and that “no interference” by the judiciary was warranted in the matter.

The judgment underscores a key principle: “Constitutional safeguards for judges cannot come at the cost of paralysing the removal process itself.” This observation highlights the court’s effort to prevent procedural interpretations from stalling legitimate inquiries into judicial misconduct.

Yashwant-Varma
Supreme Court Upholds Lok Sabha Speaker’s Decision to Form Inquiry Committee Against Justice Yashwant Varma in Burnt Cash Controversy

Background: The Fire Incident That Sparked Nationwide Controversy

The controversy traces back to the night of March 14, 2025, when a fire broke out at the official residence of then-Delhi High Court judge Justice Yashwant Varma in New Delhi. Firefighters responding to the blaze reportedly discovered substantial amounts of burnt and half-burnt currency notes in a storeroom on the premises.

Following the incident, Justice Varma was repatriated from the Delhi High Court to the Allahabad High Court. An in-house probe by a committee constituted by the then-Chief Justice of India led to recommendations for further action, including initiation of removal proceedings.

Motions seeking the removal of Justice Varma were subsequently introduced in both Houses of Parliament on the same day. While the Lok Sabha Speaker admitted the motion and proceeded to constitute an inquiry committee in August 2025, the motion faced rejection in the Rajya Sabha under the Deputy Chairman (following the resignation of the then-Chairman Jagdeep Dhankhar).

Justice Varma’s Legal Challenge and Key Arguments

Justice Varma approached the Supreme Court, arguing that the Lok Sabha Speaker’s unilateral formation of the committee violated statutory provisions. He primarily relied on the first provision to Section 3(2) of the Judges (Inquiry) Act, 1968.

This proviso addresses a specific scenario: where notices of a motion for removal are given in both the Lok Sabha and Rajya Sabha on the same day. In such cases, no committee shall be constituted unless the motion is admitted in both Houses, and if admitted, the committee must be formed jointly by the Speaker and the Chairman.

Justice Varma contended that since notices were submitted simultaneously in both Houses, a joint committee was mandatory. He further argued that rejection of the motion in the Rajya Sabha should automatically invalidate proceedings in the Lok Sabha. Additionally, he questioned the authority of the Deputy Chairman to reject the motion in the absence of the Chairman.

Supreme Court’s Detailed Reasoning and Interpretation

The bench, in its judgment authored by Justice Dipankar Datta, rejected these contentions outright. The court clarified that the proviso to Section 3(2) applies narrowly to the situation where motions are admitted in both Houses on the same day. It does not extend to cases where a motion is admitted in one House but rejected in the other.

The judges emphasized that interpreting the proviso to impose a “disabling consequence”—where rejection in one House forces failure in the other—would amount to judicial legislation, which the court is neither empowered nor inclined to undertake.

The bench observed: “There is nothing in the Inquiry Act to suggest that rejection of a motion in one House would render the other House incompetent to proceed in accordance with law.”

On the role of the Deputy Chairman, the court referred to Article 91 of the Constitution, which empowers the Deputy Chairman to perform the duties of the Chairman when the office is vacant. The bench held that duties under the Inquiry Act are inseparable from the presiding officer’s role in the House.

The court further noted that the main provision of Section 3(2) vests independent power in the Speaker or Chairman to constitute a committee upon admission of the motion. The proviso cannot curtail this power except in the explicitly defined circumstance of simultaneous admission in both Houses.

Constitutional Framework for Removal of Judges

The ruling also delved into the broader constitutional mechanism for removing judges of the Supreme Court and High Courts.

Under Article 124 (for Supreme Court judges) and Article 218 (which applies these provisions to High Court judges), removal can only occur on grounds of proven misbehaviour or incapacity. The Constitution does not use the term “impeachment” explicitly for judges, unlike for the President.

The procedure is governed by the Judges (Inquiry) Act, 1968:

  • Initiation: A motion must be signed by at least 100 members of the Lok Sabha or 50 members of the Rajya Sabha and submitted to the presiding officer, who decides on admission.
  • Investigation: If admitted, the presiding officer refers it to a three-member inquiry committee. This comprises a sitting Supreme Court judge, a Chief Justice of a High Court, and a distinguished jurist.
  • Report and Approval: The committee submits its findings to the presiding officer, who lays it before the House. If misconduct or incapacity is established, the motion proceeds to debate and requires a special majority (two-thirds of members present and voting, plus a majority of the total membership) in both Houses.
  • Final Step: Removal occurs only through an order by the President.

Notably, no judge of the higher judiciary has ever been successfully removed through this process till date.

In Justice Varma’s case, the committee—comprising Supreme Court judge Justice Aravind Kumar, Madras High Court Chief Justice Manindra Mohan Shrivastava, and Senior Advocate B V Acharya—continues its work following the Supreme Court’s clearance.

Implications of the Ruling

This decision strengthens the autonomy of each House of Parliament in initiating and pursuing removal proceedings against judges. It prevents potential procedural deadlocks from derailing accountability mechanisms.

The ruling arrives amid ongoing scrutiny of judicial conduct and underscores the importance of maintaining public trust in the judiciary while respecting parliamentary privileges.

Justice Varma had earlier informed the committee that he was not present in Delhi on the day of the incident and denied responsibility for any lapses in securing the site. The Supreme Court, however, declined to intervene further.

As the inquiry proceeds, the outcome could set important precedents for future cases involving allegations against members of the higher judiciary. The balance between protecting judicial independence and ensuring accountability remains a cornerstone of India’s constitutional democracy.

FAQs

1. What was the Supreme Court’s decision regarding Justice Yashwant Varma’s plea?

2. What is the background of the controversy involving Justice Yashwant Varma?

3. Why did Justice Varma challenge the formation of the inquiry committee?

4. How did the Supreme Court respond to Justice Varma’s arguments?

5. What happens next in the removal process against Justice Yashwant Varma?

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