·The Hindu·15 marks·250–350 words

The creamy layer exclusion seeks to target reservation at the genuinely backward. Examine the administrative challenges in determining creamy layer status, with reference to recent Supreme Court rulings.

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In this answer
  1. Administrative challenges
  2. Implications
  3. Way forward

Indra Sawhney (1992) excluded the creamy layer so that OBC reservation under Arts. 15(4) and 16(4) reaches the genuinely backward. Applying this exclusion has proved hard in practice. The Supreme Court's March 2026 ruling in Union of India v. Rohith Nathan shows that wrong classification can deny a constitutional benefit [1].

Administrative challenges

  • Unmapped posts: In 2017, board-level and managerial posts in central PSUs, banks and insurance bodies were treated as equal to Group A [3]. Posts in universities and private firms still have no government equivalent, so officials fall back on salary.
  • Status versus income: For such parents, a 2004 clarificatory letter allowed the parent's salary to decide creamy layer status. The SC held the scheme is status-based and called the salary-only test hostile discrimination under Art. 14 [1].
  • Stagnant ceiling: The ₹8 lakh limit dates from the 2017 Office Memorandum [4]. DoPT told Parliament's OBC welfare committee that no revision proposal is pending [5]. As incomes rise with inflation, more families cross the limit while their real social position stays the same.
  • Counting income: The parliamentary committee asked that salary and farm income be left out of the income test [4]. This is still not adopted, so certifying authorities calculate income in different ways.
  • Correction depends on lawsuits: The SC's November 2026 clarification says the ruling binds only the parties to the case. It does not reopen past appointments or seniority, but it governs the still-pending CSE 2025 service allocation [2]. Candidates from earlier years who were wrongly excluded but never sued get no remedy.

Implications

  • Finality versus fairness: Applying the ruling only going forward keeps cadre and seniority lists stable [2]. The cost is that similar candidates get different outcomes depending on the year they applied.
  • Each unclear category leads to more litigation and delays allocation.

Way forward

  • DoPT should finish matching university and private-sector posts to government grades.
  • Review the ceiling regularly, along the lines the committee suggested [4].
  • Codify the criteria so status is decided by clear rules, not discretion.
  • Consider supernumerary posts (extra posts beyond the sanctioned number) for earlier non-litigants who meet the Court's test.

Creamy layer status should depend on clear rules, not on who goes to court. Clear post equivalence, a regularly revised ceiling and codified criteria would carry out the Court's status-based reading. That would serve the substantive equality that Indra Sawhney intended and keep reservation targeted at those who need it.

Sources

  1. 1Supreme Court of India, *Union of India v. Rohith Nathan*, Judgment dated 11 March 2026 (2026 INSC 230): status-based test, 2004 salary letter held discriminatory under Art. 14
  2. 2'Creamy layer ruling will not alter past allocations', The Hindu, 7 Nov 2026 (news report): judgment binds only the parties, no reopening of past allocations, applies to pending CSE 2025 allocation
  3. 3DoPT Office Memorandum on equivalence of posts for OBC creamy layer (hosted by NCBC): PSU board-level and managerial posts treated as Group A
  4. 4PRS Legislative Research: Report Summary, 'Rationalisation of Creamy Layer in Employment for OBCs': ₹8 lakh ceiling under the 2017 OM; recommendation to leave out salary and farm income
  5. 5Committee on Welfare of Other Backward Classes (2024-25), Lok Sabha Report: DoPT reply that no proposal to revise the ceiling is pending

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