OBC Creamy Layer

• OBC reservation: The Central Government provides 27% reservation to OBCs in direct recruitment to Central Government services and admissions to Central educational institutions, subject to applicable rules.
• Creamy Layer: The relatively socially/economically advanced section among OBCs that is excluded from the benefit of OBC reservation.
• Constitutional Basis: The principle emerged from the Supreme Court’s interpretation of Article 16(4), particularly in the Indra Sawhney v. Union of India (1992) judgment.
• Key Principle: Reservation for OBCs is intended to benefit the socially and educationally backward classes, not the advanced sections within them.
• Income Criterion: The Central Government uses an income-based criterion as one component for identifying the creamy layer. The exact income ceiling is subject to government revision, so candidates should use the latest notified limit for current-affairs questions.
• Important: Creamy-layer determination is not based on family income alone; the framework also considers certain status/occupation and parental service categories.
• Parents’ Status Matters: The creamy-layer test generally focuses on the status of the parents, rather than the candidate’s own income.
• OBC-NCL: Candidates eligible for OBC reservation must generally produce an OBC–Non-Creamy Layer (NCL) certificate as prescribed by the recruiting/admitting authority.
• Central vs State Lists: The Central OBC List and State OBC lists can differ. Eligibility for Central Government reservation is based on the Central List.

Constitutional & Judicial Framework

Article 15(4)

• Enables the State to make special provisions for the advancement of socially and educationally backward classes, along with SCs and STs.

Article 16(4)

• Permits reservation in public employment for a backward class of citizens that, in the State’s opinion, is not adequately represented in State services.

Indra Sawhney Case, 1992

• The Supreme Court upheld 27% reservation for OBCs.
• It introduced the principle of excluding the creamy layer from OBC reservation.
• It also generally upheld the 50% ceiling on reservations, subject to exceptional circumstances.

Article 340

• Provides for the appointment of a Commission to investigate the conditions of socially and educationally backward classes.
• The Mandal Commission was constituted under this Article.

UPSC Prelims Question — English

Q. With reference to the ‘creamy layer’ among Other Backward Classes (OBCs), consider the following statements:

1. The concept of creamy-layer exclusion was laid down by the Supreme Court in the Indra Sawhney case.
2. A person belonging to an OBC community is automatically entitled to OBC reservation irrespective of creamy-layer status.
3. Creamy-layer determination is based exclusively on the annual income of the candidate.
4. Article 16(4) provides the constitutional basis for reservation in public employment for inadequately represented backward classes.

Which of the statements given above are correct?

A. 1 and 4 only
B. 1, 2 and 4 only
C. 2 and 3 only
D. 1, 3 and 4 only

Answer: A. 1 and 4 only

Explanation: The Indra Sawhney judgment (1992) established the exclusion of the creamy layer from OBC reservation. OBC status alone does not guarantee reservation if a person falls within the creamy layer. Moreover, creamy-layer determination is not exclusively an income test; prescribed status and parental service criteria also matter. Article 16(4) enables reservation for backward classes that are inadequately represented in public services.