It also drew an adverse inference against Justice Varma for failing to appear as the witness and be subjected to cross-examination. Following this inquiry, Justice Varma's explanation was found to be inadequate and he was asked to resign or go through the constitutional procedure for ouster. At that time, Justice Varma refused to resign and the report was then sent to the President and the Prime Minister. A motion in Lok Sabha to take action against him was then admitted and the statutory inquiry committee was formed with three members. This committee was led by Justice Aravind Kumar of the Supreme Court and comprised of then Bombay High Court Chief Justice Justice Shrikrishna Chandrashekhar and senior advocate BV Acharya.