Why in news?
The Centre is considering new guidelines to bring uniformity in the implementation of the “creamy layer” rule for Other Backward Classes (OBCs) across the country. The move aims to remove anomalies in how income and professional status are assessed when granting or denying reservation benefits.
Background
The concept of a creamy layer was introduced by the Supreme Court in the 1992 Indra Sawhney judgment to exclude relatively well‑off members of OBCs from reservation benefits. Since then, the Department of Personnel and Training has issued circulars that classify jobs and income thresholds to determine who falls outside the reservation ambit.
Why reform is needed
- Differing criteria: Central, state, university and public sector jobs often use different benchmarks to classify posts as Group A, B, C or D. This leads to similar posts being treated differently for the purpose of applying the creamy layer test.
- Anomalies in certificates: Cases have emerged where candidates were initially granted OBC certificates but later denied benefits because their parents’ jobs were reclassified as falling under the creamy layer.
- Fairness and transparency: A uniform policy could ensure that people with similar socio‑economic backgrounds are treated consistently across institutions.
Proposed changes
- Equivalence of posts: Define comparable positions across universities, autonomous bodies, state public sector enterprises and government‑aided institutions so that similar posts are treated the same when applying the income cut‑off.
- Income threshold: Maintain a uniform income ceiling (currently ₹8 lakh annual family income) but adjust periodically for inflation. For private sector employees, only income and assets will be considered.
- Data‑driven approach: Use real‑time salary and occupation data to classify whether a household belongs to the creamy layer.
Importance
- Social justice: Ensures that reservation benefits reach the truly disadvantaged within the OBC category.
- Legal clarity: Clear criteria help reduce litigation and appeals.
- Political sensitivity: Reforms must balance demands for fairness with the concerns of communities that fear losing benefits.
Challenges and way forward
Implementing equivalence across sectors may face resistance from vested interests. Defining posts and updating income ceilings requires regular monitoring. A transparent consultative process and judicial oversight can help ensure that the reform strengthens the credibility of India’s reservation system.