India shrinks ‘creamy layer’ to expand affirmative action

Oct 3rd, 2008 | By Sindh Today | Category: India

New Delhi, Oct 3 (IANS) As elections to the Lok Sabha and six state assemblies draw nearer, India’s cabinet Friday sharply hiked the income limit to ascertain the ‘creamy layer’ among other backward castes (OBCs) to make more people from socially deprived groups eligible for affirmative action.

Families earning more than Rs.450,000 per annum will now be considered ‘creamy layer’ among OBCs, up from Rs.250,000 earlier, as per the decision taken by a meeting of the union cabinet Friday during a meeting chaired by Prime Minister Manmohan Singh.

‘This would be in keeping with economic changes which have taken place since February 2004, when the income criteria was last revised,’ Information and Broadcasting Minister Priya Ranjan Dasmunsi said after the meeting.

Prior to that, the ceiling was fixed at Rs.100,000. Children from families earning more than this amount were ineligible for reservation in centrally-run institutions of higher education.

The government has no estimate as yet on how many people can benefit from the latest move, but some estimates suggest that close to 80 percent of OBCs will now be eligible for affirmative action.

‘All I can say is the new revision will ensure that more OBC aspirants will benefit from the reservation policy and get admission into government-run educational institutions,’ a senior official in the human resource development ministry said.

The decision came in the wake of the Supreme Court asking the government to fill vacant seats in institutions of higher education set aside for OBCs with general category students, as these could not be filled up.

Twenty-seven percent of the seats in institutions of higher education have been earmarked for OBC students.

In June this year, the National Commission for Backward Classes (NCBC) had also recommended an upward revision in the income ceiling.

The recommendations were sent to the government only on June 30, by which time the process to start the ongoing academic session had already begun.

The genesis of reservations for OBCs is in the legislation drafted by the human resource development ministry and passed by parliament in January 2007, called the Central Educational Institutions (Reservation in Admission) Act.

Soon after, the apex court stayed the enforcement of this act till such time the government excludes the ‘creamy layer’ or the economically advanced people from its ambit.

The original ceiling of Rs.100,000 per annum was recommended by the ministry of social justice and empowerment in and adopted by the cabinet. This was later revised to Rs.250,000 per annum and now stands at Rs.450,000.

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  1. Dear Sir,
    Thanks for taking issue like OBC reservation. I am studying in OBC matters, especially in creamy-layer since 15 years. The main reason for lying seats vacant is eligible OBCs are not getting caste certificate due to misinterpretation of creamy layer criteria regarding government servants. As per the creamy-layer criteria issued by Government of India DOPT O.M. No.36012/22/93-Est. (SCT) dated 8.9.1993 (also adopted by Supreme Court for recent 27% obc reservation in higher educational institutes in their judgment of writ petition (Civil) no. 265/2006 available on http://www.ncbc.nic.in then click office memorandum) following important point is misinterpreted due to which whole country is confused including OBCs and authorities issuing the caste certificate.

    NORMALLY AN OBC CANDIDATE HAVING PARENT’S SALARY INCOME ABOVE RS.4.50 LAKH DONT TRIES TO GET OBC NON-CREAMYLAYER CASTE CERTIFICATE, WHICH IS TOTALLY A WRONG CONCEPT.

    (1) Actually the creamy-layer limit of Rs. 4.50 lakhs is not applicable to “government servant’s salary income” and “farmer’s agricultural income”. It is the creamy-layer limit for “business income” only. As the government servants are to be checked by their post held and farmers by their land holdings hence can not be checked by salary/agricultural income.
    (2) In rule- (6) showing creamy-layer limit of Rs.4.50 lakhs the GOI already given the following explanation- “Income from salaries or agricultural land shall not be clubbed with income” because there is a separate rule number (2) & (3) provided on the basis of post held meant for salaried persons & a separate rule number (5) is provided for persons holding agricultural land.
    (3) The criterion (2) & (3) clearly speaks that only the following “government servants” will be treated as creamy-layer.
    (i) Parents, either of whom is a Class I officer. (Direct Recruitment)
    (i) Parents, both of whom are Class II officers. (Direct Recruitment)
    (iii) Parents of whom only the husband (father) is a Class II officer and he gets into Class I at the age of 40 or earlier.
    (iv) In military, colonel and above.
    Note- Other than the above 4, entire OBC government servant of the country will not fall under creamy-layer.
    (4) The criteria (5) clearly speak that only following “farmers” will be treated as creamy-layer.
    (i) Families having, only irrigated land which is equal to or more than 85% of the statuary ceiling area.
    (ii) The rule of exclusion will not apply if the land holding of a family is exclusively un-irrigated.
    Very clear clarifications issued by DOPT circular dated 11 October 2004 on creamy layer criteria is also available on website http://www.persmin.nic.in then click circular then click Estt (Reservation) I can clarify the creamy-layer criteria on telephone.
    Er. Shailendra Wagadre, B.E. (Civil)
    All India Chief General Secretary (since 11 years)
    All India SC-ST-OBC & Minorities Officers & Employees Association (APAAX)
    NB-69, AB Type Colony, MPSEB, SARNI 260447 District Betul (MP)
    My Phones are-09425003700 or 07146-277477

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