Syllabus: GS2/Polity
Context
- The Supreme Court reaffirmed its March 11 judgement, which held that the creamy layer status of Other Backward Classes (OBCs) cannot be decided solely on the basis of parental income.
Background
- Creamy Layer Concept was introduced through the Supreme Court’s landmark Indra Sawhney v. Union of India (1992) judgment, also known as the Mandal Commission case, to exclude socially advanced sections among OBCs from reservation benefits.
- The 1993 Office Memorandum (OM) excluded salary and agricultural income while determining the creamy layer status of OBCs.
- The 2004 clarification stated that the salary income of employees working in Public Sector Undertakings (PSUs) and the private sector would be considered for determining creamy layer status.
- The clarification was not effectively implemented until 2014 and was applied rigorously from CSE 2015 (2016 batch).
- Consequently, around 100 OBC candidates who cleared the CSE had their OBC claims rejected by DoPT on the grounds of belonging to the creamy layer.
- Supreme Court’s March 11, 2026 Judgment: The Supreme Court upheld the views of the Central Administrative Tribunal (CAT) and several High Courts, which had ruled in favour of the affected OBC candidates.
- It directed the Centre to provide relief to eligible candidates and create supernumerary posts, wherever required, to accommodate them.
- The Court allowed six months for implementation of its directions.
Significance of the Judgment
- Protection of reservation benefits: It provides relief to affected OBC candidates whose claims were rejected due to the interpretation of the creamy layer criterion.
- Judicial clarity: It clarifies the distinction between the legal principle laid down by the Court and the individual relief granted to petitioners.
- Administrative stability: It prevents the reopening of completed selections, appointments and seniority arrangements, thereby protecting the interests of other employees.
- Constitutional accountability: It reinforces the binding nature of Supreme Court judgments under Article 141.
- Article 141: It states that the law declared by the Supreme Court is binding on all courts in India.
Reservation in India
- As per existing instructions, reservation is provided to Scheduled Castes (SCs), Scheduled Tribes (STs) and Other Backward Classes (OBCs) at the rate of 15%, 7.5% and 27%, respectively, in case of direct recruitment on all India basis by open competition.
- In direct recruitment on an all India basis, other than by open competition, the percentage fixed is 16.66% for SCs, 7.5% for STs and 25.84% for OBCs.
- The Constitution (103rd Amendment) Act 2019 enables the State (i.e., both the Central and State Governments) to provide reservation to the Economically Weaker Sections (EWS) of the society.
What is the 50% Rule?
- The Supreme Court has historically maintained that reservations, whether in jobs or education, should not exceed 50% of the total seats/posts.
- Mandal Commission Case: In 1992, SC in the Indra Sawhney case had ruled that reservation should not exceed 50%, barring certain extraordinary situations.
- Such as to provide reservations to communities which hail from far flung areas of the country and have been kept out of the mainstream of the society. This is not a geographical test but a social one.
- EWS Judgement: The Supreme Court upheld the 103rd Constitutional Amendment which provides for 10% additional reservations to the EWS.
- This means, for the time being, that the 50% limit applies only to non-EWS reservations, and States are permitted to reserve a total of 60% of the seats/posts including EWS reservations.
Constitutional Provisions Related to Reservation
- Article 16: It provides for equality of opportunity for all citizens but as an exception the State can provide for reservation of appointments or posts in favour of any backward class that is not adequately represented in the state services.
- Article 16 (4A): Provides that the State can make any provision for reservation in matters of promotion in favour of the Scheduled Castes and the Scheduled Tribes if they are not adequately represented in the services under the State.
- Article 335: It recognises that special measures need to be adopted for considering the claims of SCs and STs to services and posts, to bring them at par.
- 103 Amendment of the Constitution of India: Introduced 10% reservation for Economically Weaker Sections (EWS) of society.
Source: TH
