Supreme Court's 'creamy layer' ruling: Centre seeks clarification on income test
The Supreme Court's March 11 ruling on the OBC 'creamy layer' exclusion criteria, particularly the income test, has prompted the Centre to seek clarification. The Court found that the Department of Personnel and Training (DoPT) incorrectly included salaries of PSUs/private sector employees in the income calculation, leading to 'hostile discrimination' compared to government employees. The Centre argues that retrospective implementation of this ruling, which mandates creating supernumerary posts, is 'extremely difficult' and could have a 'cascading effect' on settled services since 2012, affecting all categories, including the unreserved. The Supreme Court will now set up a Bench to hear the Centre's plea.
Key Points
- The Supreme Court ruled that salary income should not be used to exclude OBC candidates whose parents work in PSUs or the private sector without established equivalence to government service.
- The DoPT's 2004 letter, interpreting the 1993 OM, led to 'hostile discrimination' by including salaries for PSUs/private sector employees in the income test.
- The Centre finds retrospective implementation 'extremely difficult' due to potential cascading effects on settled services and fresh claims.
- The Supreme Court had directed the Centre to implement the ruling within six months and create supernumerary posts for affected candidates.
- The Centre has also argued that including salary income might be necessary in some cases to differentiate between OBC candidates from similar social backgrounds.
Exam Facts
- The Supreme Court's March 11 judgment was in the 'Union of India vs Rohith Nathan' case.
- The 'creamy layer' concept emerged from the 1992 Indra Sawhney case.
- The DoPT issued an Office Memorandum (OM) in September 1993, laying down exclusion criteria.
- The income limit for creamy layer exclusion, initially 1 lakh in 1993, was revised to 8 lakh in 2017.
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