'Unsustainable in law': SC rules OBC creamy layer status cannot be decided on income alone

NEW DELHI: The Supreme Court on Thursday ruled that the determination whether a candidate falls within the creamy layer or the non-creamy layer of the OBCs cannot be decided solely on the basis of the income.

"Determination of creamy layer status solely on the basis of income brackets, without reference to the categories of posts and status parameters is clearly unsustainable in law," the top court observed.

The term “creamy layer” refers to the relatively wealthier and socially advanced members within Other Backward Classes (OBCs) who are excluded from reservation benefits in government jobs and educational institutions. The concept was introduced after the Indra Sawhney vs. Union of India, in which the Supreme Court upheld OBC reservations but ordered the exclusion of the better-off sections.

The government later framed rules in 1993 to identify such groups. Currently, an OBC family earning more than ?8 lakh annually is generally classified as part of the creamy layer and becomes ineligible for reservation benefits. The rule aims to ensure that quotas primarily help poorer and more disadvantaged OBC communities.

The category can also include children of people holding high constitutional posts, senior government positions, high-ranking armed forces roles, or those with significant property and business income. The income ceiling was last revised in 2017 from Rs 6 lakh to Rs 8 lakh.

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