The Supreme Court of India recently ruled that socio-economic factors, not just economic status alone, should play a role in determining who is included in the ‘creamy layer’ of backward classes for reservation purposes. This judgment was in response to a petition challenging two Haryana government notifications that determined the ‘creamy layer’ solely on the basis of economic standing.
What the Supreme Court Ruling Entails
The Supreme Court reiterated the judgment from the Indra Sawhney-II case in 2000, stating that the Haryana government’s notifications were at odds with this legal precedent as they identified the ‘creamy layer’ only based on income. The court argued that the government could not deny reservation to someone from a backward community simply because he or she was wealthy. Social advancement and higher employment in government services also need to be considered when deciding if a person belongs to the ‘creamy layer’ and can be denied quota benefits.
In demonstrating what the ‘creamy layer’ encompasses, the court explained that it could include individuals from backward classes holding high-ranking positions such as IAS, IPS, and All India Services. Such individuals have achieved significant social advancement and economic stability and should not be categorized as backward. People who earn sufficient income and are in a position to provide employment to others, and those with extensive agricultural holdings or property, also fall outside the backward class category.
The Concept of ‘Creamy Layer’
The concept of the ‘creamy layer’ sets a threshold within which Other Backward Classes (OBC) reservation benefits apply. It is fundamental to maintaining the right to equality, ensuring truly deserving persons can access the reservation. However, economic status should not be the sole exclusion factor unless high economic advancement also signifies social progression.
The Central Government, specifically the Department of Personnel and Training (DoPT), has outlined different criteria for people of certain ranks/statuses/incomes whose children cannot avail benefit from OBC reservation. For instance, the current income threshold stands at an income of Rs 8 lakh p.a. which is revised every three years. In addition to this, there are stipulated ranks for parents who are government employees.
Constitutional Provisions for Other Backward Classes (OBCs)
As per the Indian Constitution, Articles 15(4), 15(5), and 16(4) empower states to identify and declare lists of Socially and Educationally Backward Classes (SEBCs). Each state and the Centre maintain separate OBC lists.
The Rohini Commission was created in 2017 under Article 340 and tasked with sub-categorizing over 5000 castes in the central OBC. Additionally, the 127th Constitution Amendment Bill 2021 reinstates states’ power to identify SEBCs, typically referred to as OBCs. This amendment was necessary following the Supreme Court’s decision in the Maratha reservation case in May, upholding the 102nd Constitutional Amendment Act.
The 102nd Constitution Amendment Act of 2018 awarded constitutional status to the National Commission for Backward Classes (NCBC), empowering the President to notify the list of SEBCs for any state or union territory. The Amendment Bill alters Articles 342 A (clauses 1 and 2) and introduces a new clause – 342 A (3) – specifically authorizing states to maintain their state list.
