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Important Editorial Summary for UPSC Exam

29 Jul
2024

Reservations and the OBC Creamy Layer (GS Paper 2, Polity & Governance)

Reservations and the OBC Creamy Layer (GS Paper 2, Polity & Governance)

Introduction

  • The recent allocation of an Indian Administrative Service (IAS) position to Puja Khedkar, an Other Backward Class (OBC) Non-Creamy Layer (NCL) candidate with multiple disabilities, has rekindled discussions about the creamy layer in OBC reservations.
  • This context highlights the ongoing debates surrounding the implementation and effectiveness of reservation policies in India.

 

History of Reservation

  • Constitutional Provisions: Articles 15 and 16 of the Indian Constitution provide for equality before the law and prohibit discrimination. They also allow for special provisions to advance socially and educationally backward classes, including SCs and STs.

 

  • Historical Milestones:
  • 1990: The Mandal Commission's recommendations led to the implementation of 27% reservation for OBCs in central government jobs under Prime Minister V. P. Singh.
  • 2005: The scope of reservation was extended to educational institutions, including private ones.
  • 2019: A 10% reservation was introduced for the Economically Weaker Sections (EWS) in the general category.

 

The Creamy Layer

  • Legal Framework: The Supreme Court's Indra Sawhney case (1992) upheld the 27% reservation for OBCs but mandated a cap of 50% on total reservations to ensure equality. It also introduced the concept of excluding the creamy layer from OBC benefits.

 

  • Criteria for Creamy Layer: Based on the Justice Ram Nandan Prasad Committee (1993) recommendations:
  • Income Criterion: Individuals are excluded from OBC reservations if their family income exceeds ₹8 lakh annually in the last three financial years, excluding income from salary and agriculture.
  • Employment Criterion: Exclusion applies to those with parents in high-ranking government positions (Group A/Class I), managerial positions in PSUs, or holding constitutional posts.

 

Issues and Controversies

  • Fraudulent Practices: There are concerns about individuals obtaining NCL or EWS certificates through dubious means. Similar issues are reported with disability certificates for central government jobs.
  • Strategies to Bypass Creamy Layer Exclusion: Some applicants and their families use strategies like transferring assets or taking premature retirement to circumvent the creamy layer restrictions, as the income of the applicant or their spouse is not considered.
  • Reservation Concentration: The Rohini Commission reported that 97% of reserved positions in jobs and educational institutions are occupied by only 25% of OBC sub-castes, leaving many communities underrepresented. Additionally, 40-50% of reserved seats for OBCs, SCs, and STs in central government positions remain unfilled.

 

Way Forward

  • Addressing Loopholes: Strengthening verification processes for NCL, EWS, and disability certificates is crucial to ensure that only eligible individuals benefit from reservations.
  • Filling Reserved Vacancies: Ensuring that reserved positions are filled without backlogs is essential for effective implementation of reservation policies.
  • Sub-Categorisation: Introducing sub-categorisation within the OBC reservation could help address the underrepresentation of various communities and ensure a more equitable distribution of benefits.
  • Creamy Layer in SC/ST: Consideration of creamy layer exclusion for SC and ST categories, at least for children of high-ranking government officials, may be necessary to enhance fairness.
  • Stakeholder Discussions: Engaging in comprehensive discussions with all stakeholders to address these issues and implement necessary changes will help ensure that reservation benefits reach the most marginalized and disadvantaged groups effectively.
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Conclusion

  • The ongoing debates about reservations and the creamy layer underscore the need for a thorough review and reform of the reservation system.
  • By addressing existing loopholes, improving the targeting of benefits, and ensuring fair representation, India can better achieve the goals of social justice and equality for its diverse population.