Supreme Court Rejects Centre’s Plea to Delay OBC Creamy Layer Ruling

The Supreme Court on Friday reaffirmed its March 11, 2026, judgment holding that the creamy layer status of Other Backward Classes (OBCs) cannot be determined solely on the basis of parental income. The court rejected the Centre’s request for two years to implement the ruling and also refused to make its decision applicable only prospectively.

A bench of Justices P S Narasimha and R Mahadevan observed that there was no convincing or reasonable justification for delaying the implementation of the judgment. While the Centre had earlier been given six months to comply, the court extended the deadline by another eight weeks.

The bench also clarified that the ruling would apply to the allocation of services for candidates selected through the Civil Services Examination 2025, as the allocation process had not yet been finalised.

However, the court said the judgment would not affect the seniority of other candidates or reopen selections and appointments that had already been concluded before March 11, 2026. Pending claims by similarly placed individuals may be examined independently by the concerned courts and tribunals.

Supreme Court Clarifies Basis for Determining OBC Creamy Layer Status

The dispute arose from the September 8, 1993, Office Memorandum (OM) and a clarification issued by the government on October 14, 2004. The 1993 memorandum excluded salary and agricultural income from the income test, while the subsequent clarification included the salary income of employees working in public sector undertakings and private companies.

The Supreme Court had observed that this distinction resulted in discriminatory treatment between the children of government employees and those of private-sector and PSU employees.

In its March 11 ruling, the court held that parental salary alone cannot determine whether an OBC candidate belongs to the creamy or non-creamy layer. It emphasised that the status and category of posts held by parents must also be considered in accordance with the 1993 memorandum.

The court further clarified that the government remains free to formulate its own reservation and creamy layer policies, provided they comply with constitutional principles and the guidelines laid down in the judgment.