New Delhi, May 8 -- The Supreme Court-appointed panel has confirmed the cash discovery allegations against Allahabad High Court's Justice Yashwant Varma in its inquiry report. Chief Justice of India Sanjiv Khanna is also learnt to have nudged the judge to step down in view of the critical findings in the report.

The CJI has forwarded the panel's report to Justice Varma and sought his reply following the principle of natural justice, the sources said.

The report was submitted to the CJI by the three-member panel comprising Punjab and Haryana High Court Chief Justice Sheel Nagu, Himachal Pradesh High Court Chief Justice G S Sandhawalia and Justice Anu Sivaraman of the Karnataka High Court. It was finalised on May 3.

The panel analysed evid...