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What is Creamy Layer in OBC and how it is determined?
During the ongoing Monsoon Session of Parliament, several MPs have raised the issue of revising the criteria for defining the creamy layer among OBCs. Earlier, the Ministry of Social Justice and Empowerment forwarded a draft Cabinet note to the NCBC stating that the creamy layer will be determined on all incomes except agricultural income. It was based on the recommendations of a committee, headed by former DoPT Secretary B P Sharma.
What is the creamy layer?
The creamy layer is used to refer to members of a backward class who are advanced socially, economically as well as educationally. People falling in this category are not eligible for government-sponsored educational and professional benefit schemes.
The term 'creamy layer' was introduced by the Sattanathan Commission in 1971. The commission directed that the creamy layer should be excluded from the reservations of civil posts.
Other than the income limit, the current definition of the creamy layer has remained unchanged.
How did 27% reservation for OBC come into force?
On 13 August 1990, the Center notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) for civil posts and direct recruitment services upon the recommendations of the Mandal Commission.
The aforementioned reservation was challenged in the Supreme Court, and on 16 November 1992, the apex court upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.
How is the creamy layer determined?
After the court upheld the reservation in the Indra Sawhney case, an expert committee led by retired Justice RN Prasad was constituted to determine the criteria for creamy layer among OBCs.
On 8 September 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail of OBC reservation.
The Sattanathan Committee in 1971 defined the creamy layer as the gross annual income of parents from all sources more than Rs. 1 lakh per annum. In 2014, the creamy layer ceiling was revised to Rs. 2.5 lakh per annum, subsequently to Rs. 4.5 lakh in 2008, Rs. 6 lakh in 2013, and Rs. 8 lakh in 2017. While the DoPT stipulated that the income limit would be revised every three years, however, it is more than three years since the last revision.
Categories under Creamy Layer
1- For those who are not government employees, the current threshold is an income of Rs. 8 lakh per year.
2- For children of government employees, the threshold is based on their parents’ rank and not their income.
3- Income from salaries or agricultural land is not clubbed while determining the creamy layer, according to a DoPT clarification issued on October 14, 2004.
It is to be noted that in addition to the above, there are other criteria as well.
Present situation
In October 2015, the NCBC proposed that if a person belonging to OBC with a gross annual income of parents up to Rs 15 lakh should be considered as the minimum ceiling for OBC while the Center is considering a consensus on Rs. 12 lakh. The NCBC further recommended the sub-division of OBCs into backward, more backward and extremely backward categories, and divide 27% quota amongst them in proportion to their population.
In July 2020, the Parliament Committee on Welfare of OBCs headed by BJP MP Ganesh Singh noted that the provision of revision of income limit after three years is not being followed by the Government, and is therefore violative of the norms set by the Government themselves.
On 21 July 2020, Amit Shah called a meeting attended by NCBC delegates and the then BJP General Secretary Bhupendra Yadav. NCBC delegates flagged the poor representation of OBCs in central government jobs and that several OBC-reserved posts were being filled by general category candidates with the noting on files that none found suitable. Amit Shah asked them to gather such data and meet again. As per sources, the NCBC delegates are ready with the data and are waiting for a meeting with the Home Minister.
It is to be noted that until 30 September 2018, the creamy layer categorization was only for the OBCs but now it is also applied to the SCs and STs to strike down any reservation meant for a creamy layer among the most backward classes. In December 2019, the Centre has appealed in the Supreme court against the previous order of applicability of creamy layer to the SC/ST quota.
What is the creamy layer?
The creamy layer is used to refer to members of a backward class who are advanced socially, economically as well as educationally. People falling in this category are not eligible for government-sponsored educational and professional benefit schemes.
The term 'creamy layer' was introduced by the Sattanathan Commission in 1971. The commission directed that the creamy layer should be excluded from the reservations of civil posts.
Other than the income limit, the current definition of the creamy layer has remained unchanged.
How did 27% reservation for OBC come into force?
On 13 August 1990, the Center notified 27% reservation for Socially and Educationally Backward Classes (SEBCs) for civil posts and direct recruitment services upon the recommendations of the Mandal Commission.
The aforementioned reservation was challenged in the Supreme Court, and on 16 November 1992, the apex court upheld 27% reservation for OBCs, subject to exclusion of the creamy layer.
How is the creamy layer determined?
After the court upheld the reservation in the Indra Sawhney case, an expert committee led by retired Justice RN Prasad was constituted to determine the criteria for creamy layer among OBCs.
On 8 September 1993, the Department of Personnel and Training (DoPT) listed out various categories of people of certain rank/status/income whose children cannot avail of OBC reservation.
The Sattanathan Committee in 1971 defined the creamy layer as the gross annual income of parents from all sources more than Rs. 1 lakh per annum. In 2014, the creamy layer ceiling was revised to Rs. 2.5 lakh per annum, subsequently to Rs. 4.5 lakh in 2008, Rs. 6 lakh in 2013, and Rs. 8 lakh in 2017. While the DoPT stipulated that the income limit would be revised every three years, however, it is more than three years since the last revision.
Categories under Creamy Layer
1- For those who are not government employees, the current threshold is an income of Rs. 8 lakh per year.
2- For children of government employees, the threshold is based on their parents’ rank and not their income.
3- Income from salaries or agricultural land is not clubbed while determining the creamy layer, according to a DoPT clarification issued on October 14, 2004.
It is to be noted that in addition to the above, there are other criteria as well.
Present situation
In October 2015, the NCBC proposed that if a person belonging to OBC with a gross annual income of parents up to Rs 15 lakh should be considered as the minimum ceiling for OBC while the Center is considering a consensus on Rs. 12 lakh. The NCBC further recommended the sub-division of OBCs into backward, more backward and extremely backward categories, and divide 27% quota amongst them in proportion to their population.
In July 2020, the Parliament Committee on Welfare of OBCs headed by BJP MP Ganesh Singh noted that the provision of revision of income limit after three years is not being followed by the Government, and is therefore violative of the norms set by the Government themselves.
On 21 July 2020, Amit Shah called a meeting attended by NCBC delegates and the then BJP General Secretary Bhupendra Yadav. NCBC delegates flagged the poor representation of OBCs in central government jobs and that several OBC-reserved posts were being filled by general category candidates with the noting on files that none found suitable. Amit Shah asked them to gather such data and meet again. As per sources, the NCBC delegates are ready with the data and are waiting for a meeting with the Home Minister.
It is to be noted that until 30 September 2018, the creamy layer categorization was only for the OBCs but now it is also applied to the SCs and STs to strike down any reservation meant for a creamy layer among the most backward classes. In December 2019, the Centre has appealed in the Supreme court against the previous order of applicability of creamy layer to the SC/ST quota.
POSTED ON 29-08-2021 BY ADMIN
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