Why is it in the news?
The Supreme Court clarified that parental income alone cannot determine creamy layer status for OBC candidates.
The ruling resolves confusion regarding the application of reservation rules in civil services examinations.
Category: Polity
Important Points:
● The judgment addressed confusion caused by the 1993 DoPT Office Memorandum and a 2004 clarificatory letter.
● The 1993 OM stated that income from salaries and agricultural land should not be counted in creamy layer determination.
● The 2004 clarification directed inclusion of salary income for PSU and private sector employees.
● The Court ruled that creamy layer determination should be status-based rather than purely income-based.
● It emphasized considering the parent’s employment status and category of post such as Group A, B, C or D.
● The Court held that the previous approach resulted in unequal treatment between government and PSU employees.
● Such discrimination was found to violate Articles 14, 15 and 16 of the Constitution.
● The verdict may expand OBC reservation eligibility for children of PSU and private sector employees.
● The concept of creamy layer was introduced in the Indra Sawhney v Union of India judgment of 1992.