CREAMY LAYER (Syllabus: GS Paper 2 – Polity)

Context: The Supreme Court has approved the sub-classification of Scheduled Castes and Scheduled Tribes to grant separate quotas for more backward groups within these communities. The Court also urged the State to develop a policy to identify and exclude the "creamy layer" from these affirmative action benefits.

Creamy Layer

• Origin of the Concept: The ‘creamy layer’ concept emerged from the landmark Indra Sawhney ruling in 1992.
• Definition: The creamy layer refers to the more socially, economically, and educationally advanced members within the OBCs, excluded from reservation benefits to ensure the support reaches those in greater need.
• Background of OBC Reservation: On August 13, 1990, the V P Singh government implemented a 27% reservation for Socially and Educationally Backward Classes (OBCs) in civil posts and services, following the Mandal Commission's recommendations.
• Supreme Court Ruling: Indra Sawhney challenged this reservation in the Supreme Court, leading to a ruling on November 16, 1992, where a nine-judge Bench upheld the 27% reservation but mandated the exclusion of the creamy layer.
• Distinction from Sub-classification: The creamy layer is distinct from sub-classification, which involves breaking down reserved categories like SC based on additional socio-economic criteria, while the creamy layer specifically denotes a more affluent segment within a community.

Criteria for Identifying the Creamy Layer Among OBCs

• Expert Committee Formation: An expert committee led by retired Justice Ram Nandan Prasad determined the criteria for identifying the creamy layer, following the Indra Sawhney judgement.
• Six categories were identified:

o Constitutional/statutory post holders

o Group ‘A’ and ‘B’ officers, PSU and statutory body employees, and university staff

o Colonels and above in armed forces and equivalent in paramilitary forces

o Professionals (doctors, lawyers, engineers, etc.)

o Property owners with significant holdings

o Income/wealth tax assesses.

• Broad Categories: Creamy layer is categorized into individuals based on parents' employment in government service or private sector, with distinctions in determination criteria based on income and rank.
• Income Threshold: Initially set at Rs 1 lakh per annum with triennial revisions; updated to Rs 8 lakh in 2017 with no further changes. A recommendation in 2015 suggested increasing it to Rs 15 lakh, but no action was taken.
• Government Service Criteria: Children of Group-A officers or those promoted to this rank before age 40, or of colonels and higher ranks, are considered in the creamy layer.