SC and the OBC creamy layer test, Pg8

Key Highlights:

• The Supreme Court on November 6, 2026, reaffirmed its March 11, 2026 judgment concerning the OBC creamy layer determination.
• The March 11 judgment upheld a 1993 Office Memorandum that excludes parental salary and agricultural income from the income/wealth test for OBC non-creamy layer status.
• The Centre sought clarification on the retrospective application of the March 11 judgment, particularly for Civil Services Examination (CSE) candidates.
• The Supreme Court clarified that the March judgment does not require reopening of past selections, appointments, or promotions.
• The ruling applies to pending claims of similarly placed candidates and future selections, including the service allocation for CSE 2025.

Detailed Insights:

• The March 11 judgment resolved confusion on calculating wealth/income for OBC creamy layer status, rejecting mechanical exclusion based solely on parental salary.
• The court emphasized that creamy layer exclusion is "status-based" rather than purely income-based, considering the parent's post status.
• It held that a 2004 clarification could not introduce substantive conditions absent from the original 1993 Office Memorandum.
• The government had assured the creation of supernumerary posts to accommodate eligible candidates.
• The Supreme Court declined the Centre's request for two years to establish equivalence between PSU and government posts.
• The court extended the compliance deadline for the March judgment by two months.

Key Concepts Involved:

• Other Backward Classes (OBC): A collective term used by the Indian government for castes that are educationally or socially disadvantaged.
• Creamy Layer: A segment within the OBC category that is considered economically and socially advanced, thus excluded from reservation benefits.
• Office Memorandum (OM): A formal communication issued by government departments to convey decisions, instructions, or policies.
• Civil Services Examination (CSE): A nationwide competitive examination conducted by the UPSC for recruitment to various civil services of the Government of India.