The report examined the issues with Creamy Layer (CL) status among OBCs and recommended raising the income limit for creamy layer.

About Creamy Layer

• The concept of creamy layer (more socio-economically advanced members among OBCs) arose out of the landmark Indra Sawhney case in 1992.
  • In Indira Sawhney case, Supreme Court upheld the 27% OBC reservation in civil posts subject to exclusion of creamy layer. 
• Based on Ram Nandan Prasad Committee, constituted after judgement, creamy layer comprised two categories - people whose parents are/were in certain category of government services, and people earning above a threshold income. 
  • The threshold income was increased to Rs. 8 lakh in 2017. 

Key Observations of Committee

• Creamy Layer Criteria: Uniform yardsticks are not being followed while applying income/wealth test to determine creamy layer status in certain states. 
  • Recommendation: States should follow uniform formula for determining creamy layer. 
• Review of Creamy Layer Limit: Existing income limit of Rs. 8 lakh for determining creamy layer is low depriving a large segment of the OBC population from reservation benefits.
  • Recommendation: Fix a substantially higher income limit after consulting with stakeholders.