Justice Yashwant Varma Under Fire After Cash Recovery At Home Was Named In 2018 Simbhaoli Sugar Fraud Case CBI FIR

New Delhi: The alleged discovery of a large stash of cash at the residence of Delhi High Court Justice Yashwant Varma has brought renewed attention to the 2018 Simbhaoli Sugar Mill fraud case, an infamous financial scandal that had largely faded from public memory. Justice Varma, who maintained a spotless reputation throughout his 22-year career, now faces scrutiny after the cash was reportedly recovered following a fire incident at his official residence.

This development has revived questions about his past financial dealings, particularly his involvement with Simbhaoli Sugars Limited, a company accused of orchestrating a multi-crore banking fraud.

About 2018 Simbhaoli Sugar Mill Fraud Case

The case dates back to February 2018, when the CBI initiated an investigation into Simbhaoli Sugars based on a complaint by the Oriental Bank of Commerce. The bank alleged that the company had misappropriated a Rs 97.85 crore loan intended for farmers, instead diverting the funds for other purposes. By May 2015, the company had already been flagged as a 'suspected fraud' case and reported to the Reserve Bank of India (RBI).

Justice Varma Named As One Of Accused By CBI

Following the complaint, the CBI registered an FIR against 12 individuals, naming Yashwant Varma as the tenth accused in his role as a Non-Executive Director of the company, reported India Today. Despite the gravity of the allegations, the case lost traction and no legal action was taken against those implicated, including Varma.

In February 2024, a court directed the CBI to resume its stalled investigation into the matter. However, according to the report, before any progress could be made, the Supreme Court overturned this directive, leading to the immediate closure of the CBI’s Preliminary Enquiry (PE). This effectively put an end to any probe into the financial irregularities involving Simbhaoli Sugars and its directors.

With the recent recovery of large amounts of cash from Justice Varma’s residence, fresh concerns have emerged about his financial history and his alleged role in the Simbhaoli Sugars case.