Justice Yashwant Varma’s name had surfaced in a Central Bureau of Investigation (CBI) First Information Report (FIR) and an Enforcement Directorate (ED) Enforcement Case Information Report (ECIR) during his tenure as a non-executive director of Simbhaoli Sugars before his elevation to the Allahabad High Court in 2014, according to a CNN-News18 report.
However, the Supreme Court last year overturned an Allahabad High Court order that had directed a CBI investigation into the Simbhaoli Sugars case.
The CBI had registered an FIR in 2018, listing Varma as “Accused Number 10” in his capacity as a non-executive director of the company in 2012. The charges in the case included criminal misconduct, cheating, and criminal conspiracy.
Justice Varma, who was serving in the Delhi High Court, is now facing scrutiny following the Supreme Court collegium’s recommendation to transfer him to the Allahabad High Court. This move comes after a substantial amount of unaccounted cash was allegedly discovered at his official residence. The Supreme Court has also initiated an in-house inquiry against him.
The CBI’s case against Simbhaoli Sugars was based on a complaint filed by Oriental Bank of Commerce in February 2018. The company was accused of securing a significant loan to be distributed among farmers for agricultural equipment and other needs but allegedly misappropriating the funds by diverting them to its other accounts. The bank had flagged Simbhaoli Sugars Limited as a suspected fraud case, involving a sum of ₹97.85 crore, and reported it to the Reserve Bank of India on May 13, 2015.
Following the CBI’s FIR against 12 individuals, including Varma, the Enforcement Directorate also filed a complaint on February 27, 2018, under Sections 3 and 4 of the Prevention of Money Laundering Act, 2002, at its Lucknow office.
In its ruling last year, the Supreme Court noted that the Allahabad High Court had erred in ordering a CBI investigation, stating that no further probe was warranted. However, the apex court clarified that authorities could still take legal action in cases of fraud.
According to sources, shortly after the FIR was filed, the CBI decided to remove Varma’s name from the case and informed the court about this development.
