Centre opposes pleas for income-based creamy layer in SC/ST quotas | Current Affairs | Vision IAS

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Centre opposes pleas for income-based creamy layer in SC/ST quotas

07 Aug 2026
2 min

Supreme Court of India: Creamy Layer Exclusion in SCs/STs Reservations

The Union government opposes petitions seeking a creamy layer exclusion within the reserved categories of Scheduled Castes (SCs) and Scheduled Tribes (STs), similar to Other Backwards Classes (OBC).

Government's Argument

  • Judicial Precedents: Established that the principles of the creamy layer do not apply to SCs and STs.
  • Means Test: Most welfare and development schemes for SCs, STs, and OBCs, except reservations in educational institutes and state services, already have a means test to ensure deserving beneficiaries.

Supreme Court Involvement

  • In February, the Supreme Court issued a notice on the petitions, asking the Union government for an Action Taken Report on sub-categorisation among SCs and STs.
  • No Action Taken Report appears to have been filed with the affidavit.

Affidavit Highlights

  • Holistic Review: Modifying reservation policy to introduce income-based preferences requires a comprehensive review and empirical study.
  • Reservation Objectives: Aim to achieve social equality, economic empowerment, and inclusive participation for marginalized communities.

Criticism of Petitions

  • The government claims the petitioners misrepresented facts to mislead the court.
  • The judgment cited in the M. Nagaraj case was viewed as a general observation regarding OBC reservations.

Judicial Developments

  • The debate over introducing a creamy layer concept for SCs and STs intensified after a 2024 judgment in State of Punjab vs Davinder Singh.
  • Justice B.R. Gavai noted the need for identifying a creamy layer for SCs and STs, possibly with different criteria than OBCs.

Centre's Position on Sub-Categorisation

  • The Centre remains uncertain about wielding sub-categorising powers nationally.
  • Only Parliament can modify the SC and ST lists, not the court, as per the Centre's affidavit.
  • The Davinder Singh judgment differentiated between Parliament's power to alter these lists and the Executive's power to categorise within them.

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Sub-categorisation

The process of dividing a broad reserved category (like SCs or STs) into smaller, more specific groups, often based on varying levels of backwardness, to ensure more equitable distribution of reservation benefits.

State of Punjab vs Davinder Singh

A recent (2024) Supreme Court judgment that differentiated between Parliament's power to modify the SC/ST lists and the Executive's power to categorize within these lists, and highlighted the need to identify a creamy layer for SCs/STs.

M. Nagaraj case

A landmark Supreme Court judgment (2006) that upheld the principle of creamy layer exclusion for OBCs in reservations, and also laid down conditions for imposing it on SCs/STs, including requiring the state to collect quantifiable data on backwardness.

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