A Supreme Court-appointed inquiry panel has unequivocally dismissed the conspiracy claims made by Allahabad High Court Justice Yashwant Varma regarding the discovery of a large cache of half-burnt currency notes at his official residence in New Delhi. The panel's report not only questioned his failure to report the incident to the police but also concluded that Justice Varma and his family members had "covert or active control" over the storeroom where the cash was found. This conduct was deemed serious enough to warrant his removal from office.

The incident that sparked the inquiry occurred on the night of March 14, when a fire broke out at Justice Varma's bungalow at 30 Tughlak Crescent. Firefighters and police personnel responding to the blaze discovered charred stacks of Rs 500 notes scattered across the floor, with one witness describing the sight as "shocking" and a "large pile of cash." The three-judge panel, headed by Chief Justice Sheel Nagu of the Punjab and Haryana High Court, along with Chief Justice G S Sandhawalia of Himachal Pradesh High Court and Justice Anu Sivaraman of Karnataka High Court, was constituted on March 22 by former Chief Justice of India Sanjiv Khanna to investigate the matter.

Over a 10-day period, the panel conducted a thorough inquiry, examining 55 witnesses, including Justice Varma and his daughter, and visiting the scene of the fire. Justice Varma's defense, that the storeroom was used for miscellaneous items and was accessible from both front and rear entrances, making it susceptible to outsiders, was rejected. The panel found his