The government is actively working to standardise the application of the ‘creamy layer’ criterion in reservations for Other Backward Classes (OBCs). This move aims to ensure fairness and uniformity for candidates across central and state government jobs, public sector undertakings, universities, and related institutions. The proposal follows consultations with ministries, the National Commission for Backward Classes (NCBC), and NITI Aayog. It seeks to address inconsistencies arising from past circulars and clarify eligibility norms.
The Concept of Creamy Layer
The ‘creamy layer’ excludes affluent individuals within OBCs from reservation benefits. This principle was established by the Supreme Court in the 1992 Indra Sawhney judgement. The government’s 1993 Department of Personnel and Training (DoPT) circular defined the creamy layer by excluding children of high-ranking officials, professionals, and wealthy families. Income thresholds and job equivalence were key criteria. For example, children of Group A government officers or those promoted before 40 were excluded. Income limits initially set at Rs 1 lakh annually have increased to Rs 8 lakh since 2017, excluding agricultural income.
Clarifications and Challenges Post-2004
In 2004, DoPT issued detailed clarifications to address gaps in the creamy layer definition, especially for non-government jobs. It introduced income tests considering salaries and other sources separately. If parental income exceeded Rs 2.5 lakh for three consecutive years, children were excluded from OBC quotas. However, these rules were loosely enforced during 2004-2014, leading to uneven application. Post-2014, stricter scrutiny led to rejection of many caste certificates based on the updated creamy layer standards, affecting over 100 successful civil service candidates.
Efforts to Establish Job Equivalence
The government is working to create equivalence across various job categories to apply the creamy layer uniformly. While central public sector units have defined equivalence, other sectors like universities and state PSUs await finalisation. Proposals include classifying children of university teachers as creamy layer due to their pay scale equivalence with Group A posts. Non-teaching university staff and employees of government-aided institutions will be categorised based on pay and service conditions. Executive-level positions in state PSUs will be treated similarly to central PSUs, with exceptions for incomes below Rs 8 lakh.
Impact and Likely Beneficiaries
If implemented, the policy will benefit children of lower-level government employees earning above Rs 8 lakh annually. It will resolve anomalies where children of government teachers receive OBC benefits but those of equivalent employees in aided institutions do not. The policy will largely maintain existing income-based criteria for private sector employees due to difficulties in establishing equivalence. The move aims to ensure consistent application of reservation benefits and reduce disputes over eligibility.
Questions for UPSC:
- Discuss the significance of the ‘creamy layer’ concept in the context of affirmative action policies in India. How does it balance social justice and meritocracy?
- Critically examine the challenges in implementing uniform reservation policies across diverse public sector organisations in India. What role does job equivalence play in this context?
- Explain the impact of judicial interventions, such as the Supreme Court’s verdict in Indra Sawhney vs Union of India, on the evolution of reservation policies in India. With suitable examples, discuss their implications on social equity.
- Comment on the difficulties in defining economic criteria for reservation benefits in the private sector. How can policy frameworks address these challenges while ensuring fairness?
