The Supreme Court, in a five-judge Constitution Bench ruling, has maintained the application of the “creamy layer” principle for reservations of Scheduled Castes (SCs) and Scheduled Tribes (STs) in promotions. The ‘creamy layer’ concept imposes an income ceiling on individuals seeking caste-based reservations in government roles and education. Earlier, this was only applicable for reservations under the Other Backward Classes quota, while SCs and STs were exempted as their disadvantage was argued to be solely based on untouchability, which couldn’t be counteracted by economic improvement.
Past Verdicts and Reservations
The Supreme Court has also ruled that the judgment in the M. Nagraj v. Union of India case, about reservations for SCs and STs in promotions, need not be referred for reconsideration. The Center had argued that the 2006 M Nagaraj verdict effectively halted promotions by introducing criteria like backwardness, inadequate representation, and overall administrative efficiency. The Nagaraj verdict was challenged by several states, claiming that its reservation criteria for SC/ST promotions was proving to be an obstacle in filling thousands of vacancies in government departments across various states.
Previous Reservation Policies
In the 1950s, both Central and State Governments began a policy of reserving seats in promotions for SC and ST communities, arguing that these communities were inadequately represented at the decision-making level in public services. However, the Supreme Court declared this policy unconstitutional in Indra Sawhney v. Union Of India 1992 case. The court stated that under Article 16(4), the State is allowed to make reservations only at the entry level. The Parliament responded by enacting the 77th Constitutional Amendment Act which introduced Article 16(4A), allowing reservation in promotions if SC or ST communities are inadequately represented in public employment. This law was retrospectively applied from 1992.
Application of ‘Creamy Layer’ Principle
The Supreme Court ruled that the “creamy layer exclusion” principle, until now only applicable to OBCs, can also be extended to SCs and STs. The objective of reservation would not be accomplished if the privileged within a class secure all the prestigious jobs in the public sector, leaving the rest of the class as disadvantaged as ever.
Proof of Backwardness of SC/STs
It was held by the Supreme Court that the conclusion in the Nagaraj case, which stated that the State must gather quantifiable data showing the backwardness of SCs and STs, was invalid. The court noted that the nine-judge bench in the Indra Sawhney v. Union of India case had determined that the criterion of social and educational disadvantage cannot be applied to SCs and STs.
Reservation In Promotion Need Not Be Proportional To Population
The court also pointed out that the Constitution in Article 330 (Reservation of seats for SCs & STs in the House of People) mandates proportionality in relation to the population. However, the same requirement is not placed on reservations in promotions under Article 16(4A).