Panic was created inside a Varanasi court when a crude bomb was found on Saturday morning. The bomb squad, however, defused the bomb and there was no loss of life and property. It is reported that the bomb was found at gate number two of the court. The police and the bomb squad had reached the spot as soon as they got information. The court premise has been evacuated and is being searched by the police. The police said that the bomb found was a hand-grenade.