Sub-classification and Creamy Layer in SC/ST Reservations

Source-This post on Sub-classification and Creamy Layer in SC/ST Reservations has been created based on the article “Identifying the ‘creamy layer’: model of OBC reservation” published in “The Indian Express” on 2 August 2024.

UPSC Syllabus-GS Paper-2-Social Justice

Context– The Supreme Court has recently allowed sub-classification of Scheduled Castes and Scheduled Tribes to provide separate quotas for the more disadvantaged within these groups.

What are the Key Aspects of Ruling?

1) Sub-classification- The court permitted the division of SC and ST categories into sub-categories for more targeted reservations.

2) Creamy Layer Concept– Justice B.R. Gavai emphasized the need for states to develop policies to identify and exclude the creamy layer within SC and ST communities from affirmative action benefits.

3) Implementation– The Supreme Court has given states the authority to decide on and implement a creamy layer exception. States may need to form committees, like the Justice R.N. Prasad Committee for OBC reservations, to set specific criteria.

Read More- The problems with sub-caste reservations

What is Creamy Layer?

1) Origin-The concept emerged from the landmark Indra Sawhney case ruling in 1992.

2) Definition-The creamy layer refers to the more socially, economically, and educationally advanced members within a backward community. This is done to ensure reservation benefits reach those who need them most.

3) Distinction: – The creamy layer is different from sub-classification. Sub-classification involves breaking down a reserved category (like SC) into groups based on socio-economic criteria. The creamy layer, on the other hand, identifies the more advantaged individuals within a specific caste or community.

How is creamy layer among the OBC identified?

The creamy layer criteria were set by a committee led by retired Justice Ram Nandan Prasad after the Indra Sawhney judgment. This report led the Department of Personnel and Training (DoPT) to define six categories of people whose children are classified as part of the creamy layer:-

A) Constitutional/statutory post holders

B) Group ‘A’ and ‘B’ officers in government, PSUs, universities

C) Colonels and higher ranks in the armed forces and paramilitary

D) Professionals like doctors, lawyers, engineers, etc.

E) Property owners with agricultural or vacant land/buildings

F) Income/wealth tax assessee

2) Income Threshold-The income threshold was raised from Rs 1 lakh to Rs 8 lakh in 2017 but has not been updated since. The NCBC suggested raising it to Rs 15 lakh in 2015, but no action was taken.

3) Reservations and Review Committee Update -Children of group-A officers or those with parents in the creamy layer are ineligible for OBC reservations. A committee led by B P Sharma was set up in March 2019 to review these criteria, but no progress has been made.

What could be the potential criteria for determining the SC/ST creamy layer?

1) Differential Approach-Justice Gavai suggested that criteria for SC/ST creamy layer exclusion may differ from those applied to OBCs. However, he did not provide a clear criterion for how this determination should be made.

2) Educational Consideration-Justice Pankaj Mithal hinted at using educational institutions as a potential criterion, distinguishing between urban and rural educational backgrounds. However, the SC creamy layer issue is complex due to historic caste-based injustices that may not be easily overcome by economic and social mobility.

Question for practice

What are the Key Aspects of Ruling? How is creamy layer among the OBC identified? What could be the potential criteria for determining the SC/ST creamy layer?