New Delhi: Following reports of alleged cash discovery from sitting Delhi HC judge Yashwant Varma's official home, the Supreme Court on Friday said the Delhi High Court chief justice D K Upadhyaya had initiated an in-house inquiry against him and the proposal to transfer him to the Allahabad High Court was separate.

Justice Upadhyaya, while presiding his bench, expressed shock on the matter. The chief justice's reaction came when a senior lawyer mentioned before him that he and many other advocates were pained and shaken by the incident and urged the chief justice to take some steps on the administrative side. The purported discovery of a huge stash of cash happened following a fire at Varma's Lutyens Delhi residence at around 11.35 pm on March 14, prompting the Delhi fire department personnel to rush to the spot and douse it.

The quantum of the alleged discovered amount is also not known. The incident created ripples in the legal circuit, with many voices calling for the judge's resignation while criticising the Supreme Court collegium decision to transfer him. To put to rest the supposed conjectures, the top court issued a statement which read, "There is misinformation and rumours being spread with regard to the incident at the residence of Justice Yashwant Varma."

While confirming reports that the apex court collegium met to discuss the matter, the top court said Delhi High Court Chief Justice D K Upadhyaya would submit a report to Chief Justice of India Sanjiv Khanna today. Upon receiving the information, the apex court said,

Justice Upadhyaya "commenced the in-house inquiry procedure collecting evidence and information".

Justice Upadhyaya was stated to have commenced the enquiry prior to the collegium meeting on March 20.