OBC creamy layer income test clarification

Notes

• The 'creamy layer' concept, originating from the 1992 Indra Sawhney judgment, excludes socially and economically advanced OBC individuals from reservation benefits.
• The 1993 DoPT Office Memorandum (OM) established exclusion criteria, including an income/wealth test that explicitly excluded income from salaries and agricultural land.
• A 2004 DoPT letter created ambiguity by suggesting that salary income should be counted for parents employed in PSUs where post-equivalence with government service is not established.
• In the 'Union of India vs Rohith Nathan' (March 11, 2026) judgment, the Supreme Court ruled that excluding OBC candidates based on parental salary income—while government employees' children are exempted—constitutes 'hostile discrimination'.
• The Court defined the income/wealth test as a 'residual filter' and directed the creation of supernumerary posts for affected candidates.
• The Centre has filed applications seeking clarification, citing difficulties in retrospective implementation, potential cascading effects on seniority, and administrative challenges in adjusting services for candidates from 2012 onwards.
• The Centre argues that without considering salary income, some individuals from high-earning backgrounds could be classified as non-creamy layer, potentially undermining the policy's intent.
• The Supreme Court is considering forming a Bench to address the Centre's concerns regarding the retrospective application of the judgment and the status of CSE 2025 candidates.

Part of a longer story

This is day 4 of 5 in Supreme Court review of OBC creamy layer criteria, which has been running since 26 August 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

• BJP MP Ganesh Singh on OBC creamy layer Before
• Bihar OBC creamy layer status guidelines After
• The whole story 5 entries