New Delhi, India: The Supreme Court has reiterated an important ruling regarding the determination of the creamy layer under Other Backward Classes (OBC) reservation. The apex court has clarified that the salary or income of parents working in Public Sector Undertakings (PSUs) or private companies cannot, by itself, be the basis for classifying a candidate under the creamy layer category. The parents’ official position and service status must also be taken into consideration.
The Supreme Court has upheld its earlier judgment delivered on March 11, 2026. The ruling concerns the eligibility criteria for determining creamy layer status while granting reservation benefits to OBC candidates.
Creamy Layer Status Cannot Be Determined Solely on Income
The court clarified that the salaries of parents employed in PSUs and the private sector cannot be assessed in isolation from the position and service category of government employees.
While determining creamy layer status, authorities must also consider the nature of the parents’ employment, their official positions, and the relevant service-related criteria.
This means that an OBC candidate cannot automatically be excluded from reservation benefits merely because their parents earn a high income.
Supreme Court Rejects Centre’s Request
The Central Government had requested the Supreme Court to make its March 11, 2026, judgment applicable prospectively, meaning from a future date rather than retrospectively.
The government argued that the Supreme Court had the authority to issue such a direction under Article 142 of the Constitution.
The Centre maintained that retrospective implementation of the judgment could create difficulties for employees who were not parties to the case.
However, the Supreme Court rejected the Centre’s request to implement the judgment only from a future date.
Centre Granted Two Additional Months
The apex court has granted the Central Government an additional two months to implement its decision.
The ruling brings important clarity to the criteria used for determining creamy layer status under OBC reservation, particularly for candidates whose parents are employed in PSUs or private-sector organisations.
