Justice Yashwant Varma has been associated with several significant judgments involving the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), particularly concerning the interpretation and application of the Prevention of Money Laundering Act (PMLA). Notably, in a 2023 judgment, Justice Varma emphasized that the ED’s authority is confined to investigating offenses explicitly defined under Section 3 of the PMLA. He clarified that the ED cannot assume the commission of predicate offenses, which must be investigated and tried by the appropriate authorities designated by law. Justice Varma stated, “The predicate offense has to be necessarily investigated and tried by the authorities empowered by law in that regard.
Furthermore, in another landmark decision, Justice Varma addressed the impact of a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) on the ED’s powers to attach properties under the PMLA. He opined that the enforcement of a moratorium affects the ED’s authority to proceed with attachment, underscoring the need for a harmonious interpretation of the IBC and PMLA provisions. ​
These judgments have played a pivotal role in delineating the scope of powers exercised by investigative agencies like the CBI and ED, ensuring adherence to legal boundaries and protecting individual rights. Justice Varma’s interpretations have contributed to a more precise understanding of the PMLA’s application, influencing subsequent rulings and legal discourse.​
It is essential to note that while Justice Varma has presided over cases involving the CBI and ED, there is no public record or evidence indicating his personal involvement as a subject in any investigations conducted by these agencies. His role has been that of a judicial authority adjudicating matters related to these investigative bodies.​
In summary, Justice Yashwant Varma’s judicial pronouncements have significantly impacted the legal landscape concerning the powers of the CBI and ED, particularly in the context of the PMLA. His judgments have clarified the extent of authority these agencies hold, ensuring that their actions remain within the confines of the law.