Cash discovery at HC judge’s residence brings NJAC Act into spotlight: What was it?

Vice President Jagdeep Dhankhar

Nowhere in the world does judiciary appoint itself, senior advocate Harish Salve had said criticising the collegium system of appointment of judges in India.

The system is yet again under scrutiny amid a row over the alleged discovery of cash at the residence of a Delhi High Court judge -- reigniting discussions on the National Judicial Appointments Commission (NJAC) Act, which the Supreme Court had previously struck down as unconstitutional.

The NJAC Act, which provided a greater say to the executive in the judicial appointment process, was passed by both Houses of Parliament with near unanimity.

Rajya Sabha Chairman Jagdeep Dhankhar brought up the Act in Parliament last week amid reports of the alleged cash recovery, saying it bothered him that “the incident happened and did not immediately surface.” The Vice President said that “if the malaise had been dealt with, perhaps we would not have countenanced such kind of issues”.

Referring to the NJAC Act, Dhankhar highlighted that it aimed to overhaul judicial appointments but was struck down by the court. “That historic legislation endorsed by this Parliament with unprecedented consensual support unknown to the parliamentary history of this country dealt with the malaise very severely,” he said.

How are judges appointed currently?

The collegium system governs the process, with the Chief Justice of India and the four senior-most Supreme Court judges handling appointments and transfers for Supreme Court judges. High Courts follow a similar structure, with collegiums led by the incumbent Chief Justice and the two most senior judges of that court.

Politicians and some eminent jurists have repeatedly criticised the collegium system for its lack of transparency, claiming that judges appointing judges without any input from the executive has led to concerns about nepotism and favoritism.

Successive CJIs have defended the system saying it has stood the test of time and was working without any hitches.

What was NJAC Act?

The bill was passed by Parliament in August 2014 and the Act came into force on April 14, 2015, after it was ratified by half of the state legislative assemblies.

The now-struck-down law stipulated that the NJAC would be headed by the Chief Justice of India, with two senior Supreme Court judges representing the judiciary. In addition, the body would consist of the law minister and two eminent individuals to be nominated by a committee of the Prime Minister of India, the Chief Justice of India, and the Leader of the Opposition in the House of the People, or if there is no Leader of the Opposition, then the leader of the single largest opposition party in the Lower House.

With a view to ensuring that the composition of the NJAC is inclusive, the Act provided that one of the eminent persons shall be nominated from amongst persons belonging to the SC, ST, OBC, minority communities or women.

On October 16, 2015, the top court struck down the law describing it as unconstitutional. The decision revived the collegium system.

The Supreme Court's decision bolstered the judiciary's supremacy in appointing judges.

Who said what amid cash discovery row?

Reacting to the 'cash recovery' claims against High Court Justice Yashwant Varma, Congress leader KC Venugopal said the incident raises serious questions about systemic corruption.

“The reported incident of mounds of cash recovered from a High Court judge’s residence has shocked the nation. The judiciary is the last bastion of justice —when trust erodes here, where do citizens turn?” he wrote on X.

He further questioned that 'shouldn't this be a moment for serious introspection and complete transparency towards the public’ and added that the nation is looking towards the Supreme Court to take up strong steps into the matter.

TMC MP Mahua Moitra, meanwhile, has accused the Modi government of setting the stage to gain 'total control over judicial appointments.'

Earlier, Salve, in conversation with Moneycontrol had said, “I do not subscribe to the belief that if the judiciary is not left free to appoint judges, then the independence of the judiciary will be compromised. These are myths which need to be busted.”

Cash discovered at Judge’s residence

A significant controversy surrounded Justice Yashwant Varma after a fire at his residence on March 14, 2025, allegedly uncovered a substantial amount of cash. Justice Varma has denied the claims, insisting that neither he nor his family possesses the money and calling it a calculated attempt to frame him.

Following his observations in the Rajya Sabha on March 21, Dhankhar reportedly held a meeting with Leader of the House JP Nadda and Leader of the Opposition Mallikarjun Kharge for a structured discussion in the Upper House of Parliament on the issue of judicial accountability and the NJAC Act.

(With inputs from agency)