Supreme Court clarifies OBC creamy layer test, parental income alone not sole determinant
The Supreme Court ruled that parental income alone cannot be the sole criterion for determining the 'creamy layer' among OBC candidates, especially for those whose parents work in PSUs or private employment. This judgment aims to resolve decades of confusion regarding the application of the income/wealth test. The Court emphasized that salary and agricultural incomes should be excluded from the income calculation for the creamy layer, as per the 1993 DoPT OM, and found the 2004 clarificatory letter problematic for including them. This ruling provides relief to candidates denied OBC quota benefits due to "hostile discrimination."
Key Points
- The Supreme Court ruled that parental income alone is insufficient to determine the 'creamy layer' for OBC candidates.
- The judgment specifically addresses OBC candidates whose parents are in PSUs or private employment, where equivalence with government posts is not established.
- The Court clarified that salary and agricultural incomes should be excluded from the income/wealth test, upholding the 1993 DoPT OM.
- The 2004 DoPT letter, which suggested including salary income, was deemed problematic and led to "hostile discrimination."
- The ruling provides relief to approximately 100 candidates from 2015 onwards and mandates the creation of supernumerary posts for eligible candidates.
Exam Facts
- The Supreme Court's ruling was on March 11, 2026.
- The concept of 'creamy layer' was introduced following the 1992 Indra Sawhney case.
- The Department of Personnel and Training (DoPT) issued a guiding Office Memorandum (OM) in September 1993.
- The income/wealth test threshold, initially ₹1 lakh in 1993, was last revised to ₹8 lakh in 2017.
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