A writ petition has been filed in the Supreme Court, seeking the registration of an FIR against Justice Yashwant Varma. This follows an in-house inquiry initiated by the Chief Justice of India (CJI), Sanjiv Khanna, over allegations involving the discovery of large amounts of illicit cash at Justice Varma's official residence.

The petition, filed by Advocate Mathews Nedumpara and three others, comes after an earlier petition challenging the in-house inquiry. The Supreme Court had dismissed the initial plea, stating that it was premature, emphasizing, "At this stage, it will not be appropriate to entertain this Writ Petition."

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After the conclusion of the in-house inquiry, the CJI submitted the report to the President and the Prime Minister. The report found the allegations against Justice Varma to be "prima facie true." Based on this, the petitioners argue that a criminal investigation is now necessary.

The petition also questions the Supreme Court’s ruling in the K. Veeraswami case, which requires the Chief Justice of India's permission before registering an FIR against a judge. The petitioners claim this condition is contrary to the law and needs reconsideration.

The petitioners allege that the case involves "black money accumulated by selling justice." They assert that even if Justice Varma's version is considered, his failure to file an FIR regarding the cash discovery is suspicious. They further argued:
"Filing an FIR, even belatedly, is absolutely necessary to enable the police to investigate the conspiracy aspect."

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The petitioners emphasized that mere impeachment of Justice Varma is insufficient and that criminal penalties must be enforced. According to them:
"When it is a judge, the defender of justice who is himself the accused, the gravity is far greater, and so must be the punishment."

The controversy began on March 22, when a firefighting operation led to the accidental discovery of a large stash of cash in a store-room at Justice Varma's official residence. At that time, Justice Varma was serving at the Delhi High Court. Following the incident, he was transferred to the Allahabad High Court, his parent High Court, and his judicial work was withdrawn as directed by the CJI.