OBC Creamy Layer And The Income Test, Pg8

Key Highlights:

• The Supreme Court will consider setting up a Bench to hear the Centre’s application regarding its March 11 judgment on the OBC creamy layer income test.
• The Centre stated that retrospective implementation of the judgment is "extremely difficult" due to potential "cascading effects" on settled services since 2012.
• The March 11 judgment in Union of India vs Rohith Nathan found the Department of Personnel and Training (DoPT) incorrectly applied the income test for certain OBC candidates.
• The Supreme Court directed the government to create supernumerary posts for affected OBC candidates who faced "hostile discrimination" due to the income test.

Detailed Insights:

• The creamy layer concept for OBCs originated from the Supreme Court’s 1992 ruling in the Indra Sawhney case, aiming to exclude privileged individuals from reservation benefits.
• The DoPT issued an Office Memorandum (OM) in September 1993, outlining criteria for creamy layer exclusion, including an income/wealth test.
• The 1993 OM explicitly excluded income from salaries and agricultural land from the income/wealth test calculation.
• However, a 2004 DoPT letter appeared to suggest including salary income for OBC candidates whose parents were in Public Sector Undertakings (PSUs) or private employment.
• The Supreme Court ruled that applying the income test, including salaries, to those in PSUs or private employment without establishing equivalence to government posts constituted "hostile discrimination."
• The Centre's application highlights difficulties in creating supernumerary posts and managing seniority issues arising from retrospective implementation.
• The Centre also seeks clarification on continuing the old income test for Civil Services Examination (CSE) 2025 candidates and suggests including salary income as a "sole intelligible differentia" in some cases.

Key Concepts Involved:

• OBC creamy layer: A segment within the Other Backward Classes (OBCs) that is considered socially and economically advanced, thus excluded from reservation benefits.
• Indra Sawhney case: A landmark 1992 Supreme Court judgment that upheld OBC reservations but introduced the concept of the "creamy layer" for exclusion.
• Department of Personnel and Training (DoPT): The nodal agency under the Ministry of Personnel, Public Grievances and Pensions responsible for personnel matters, including reservation policies.
• Office Memorandum (OM): A formal communication issued by government departments to convey decisions, instructions, or policies.
• Supernumerary posts: Additional posts created over and above the sanctioned strength to accommodate specific categories of employees without disturbing the existing cadre.