OBC creamy layer income test issue stuck between Ministries, says House panel chief, Pg12

Key Highlights:

• The issue of OBC creamy layer exclusion criteria, specifically the income/wealth test and equivalence of posts, is currently stalled between the Ministry of Personnel, Public Grievances and Pensions and the Ministry of Social Justice and Empowerment.
• In March 2026, the Supreme Court ruled that income alone cannot be the sole criterion for determining the creamy layer among Other Backward Classes (OBCs).
• The court found that the Department of Personnel and Training (DoPT) was practicing "hostile discrimination" by applying the income test differently to OBC candidates based on their parents' employment in government versus non-government sectors.
• The ruling directed the government to exclude salaries from the income test for certain OBC candidates and to create supernumerary posts for those previously denied non-creamy layer status.
• The government subsequently approached the Supreme Court seeking clarification, stating that retrospective implementation of the judgment, particularly for Civil Services Examination (CSE) 2025, would be "extremely difficult."

Detailed Insights:

• The Supreme Court judgment highlighted that the DoPT had been including salary income for OBC candidates whose parents worked in jobs without established equivalence to government posts, unlike those in government service.
• This practice was deemed legally erroneous and constitutionally impermissible, creating artificial distinctions among similarly placed OBC candidates.
• The House panel on welfare of OBCs, chaired by BJP MP Ganesh Singh, has consistently pointed out the government's incorrect application of the income test, particularly its interpretation of a 2004 DoPT letter.
• The panel emphasized that the Ministry of Social Justice and Empowerment should formulate policy on the equivalence of posts and the application of the income test.
• The government's plea to the Supreme Court for clarification on the March 2026 verdict specifically concerned its applicability to CSE 2025, whose results were declared before the judgment.
• The Supreme Court has agreed to constitute a special bench to hear the Centre's plea regarding the retrospective application of the verdict.

Key Concepts Involved:

• OBC Creamy Layer: The economically, socially, and educationally advanced section within the Other Backward Classes, who are excluded from reservation benefits.
• Equivalence of Posts: The process of determining comparable ranks and statuses between government, Public Sector Undertaking (PSU), and private sector jobs for applying creamy layer criteria.
• Department of Personnel and Training (DoPT): A department under the Ministry of Personnel, Public Grievances and Pensions responsible for personnel management, including policies related to reservations.