Creamy Layer in SC, ST Reservation
Context : The Supreme Court is examining a plea for a structured mechanism similar to the OBC creamy-layer concept for Scheduled Castes and Scheduled Tribes (SC/ST). The issue sits alongside the Court’s 1 August 2024 seven-judge judgment in State of Punjab v. Davinder Singh, whose majority held that states may sub-classify SCs and that the creamy-layer principle applies to SC/ST affirmative action, with criteria that may differ from OBC rules.
What has not happened: the judgment did not create a single nationwide income threshold or an automatic creamy-layer certificate. The current plea and any government policy still require a clearly defined, evidence-based implementation framework.
UPSC Relevance:
Prelims , UPSC has asked question based on understanding of Fundamental Rights andcrelated concepts.
2020 Prelims
Which one of the following categories of Fundamental Rights incorporates protection against untouchability as a form of discrimination? (UPSC CSE –)
(a) Right against Exploitation
(b) Right to Freedom
(c) Right to Constitutional Remedies
2018 Prelims
Which of the following are regarded as the main features of the “Rule of Law”?
Limitation of powers
Equality before law
People’s responsibility to the Government
Liberty and civil rights
Select the correct answer using the code given below:
A 1 and 3 only
B 2 and 4 only
C 1, 2 and 4 only
D 1, 2, 3 and 4
Relevant Constitutional Provision – Article 16
Article 16 provides for equality of opportunity in matters of employment under state on grounds only of religion, race, caste, sex, descent, place of birth or residence.
This is subject to exceptions under Article 16 (3), (4),(5) and (6).
Evolution of Creamy Layer
| 1971 | Sattanathan Commission | It was one of the first to propose the exclusion of a “creamy layer” from the benefits of reservation. It didn’t explicitly use the term. |
| 1976 | State of Kerala v. NM Thomas | Though not explicitly named “creamy layer,” the court acknowledged the issue of affluent members within backward classes potentially monopolizing reservation benefits.Justice Krishna Iyer’s observations highlighted the need to ensure that these benefits reach the truly disadvantaged. |
| 1990 | VP Singh government | This government implemented the Mandal Commission’s recommendations in 1990. It proposed a 27% reservation of jobs in central government services and public sector undertakings for the Other Backward Classes (OBCs). |
| 1991 | Narasimha Rao Government | Introduced a provision to give preference to the “poorer sections” among the OBCs.This move was a precursor to the “creamy layer” concept. |
| 1992 | Indra Sawhney v. Union of India (also known as the Mandal Commission case) | The Supreme Court upheld the 27% reservation for Other Backward Classes (OBCs) in central government jobs but mandated the exclusion of the “creamy layer” from within the OBCs as proposed by Narsimha Rao govt. The court, however, clarified that this principle was not applicable to Scheduled Castes (SCs) and Scheduled Tribes (STs) at that time. |
| 2006 | M. Nagaraj v. Union of India | The Court upheld the constitutional amendments enabling reservation in promotions, subject to constitutional limits. It applied a creamy-layer test to SC/ST promotion reservations and required quantifiable data on backwardness and inadequate representation; Jarnail Singh later removed the backwardness-data requirement. |
| 2018 | Jarnail Singh v. Lachhmi Narain Gupta | The Constitution Bench reaffirmed that the creamy-layer principle can apply to SC/ST reservation in promotions. It held that the state need not collect quantifiable data to prove backwardness of SCs/STs, while the constitutional conditions governing inadequate representation and efficiency remain relevant. |
| 2024 | State of Punjab v. Davinder Singh | The seven-judge Bench held that state sub-classification within the SC list is permissible when supported by empirical data and cannot reserve every seat for one sub-group. The majority also held that the creamy-layer principle applies to SC/ST affirmative action and that its criteria may differ from OBC criteria. |
Why creamy layer for SC /ST Reservation?
- The petition argues that the current reservation disproportionately benefits socially and economically well-off groups within SC/ST and the most deprived continue to face extreme poverty without adequate benefits.
- A 2023 parliamentary committee report on SC/ST welfare found that SCs and STs exceed their reserved quotas only in lower-level Group C jobs and among sanitation (safai karamchari) roles. As the level of seniority increases, many reserved SC/ST posts go unfilled, indicating that the “upper crust” among these communities disproportionally gains the benefits, while the poorest segments are left behind.
- Political empowerment has not translated into broad socio-economic development for the entire community.
- The Madiga movement (Madiga Dandora) in Andhra Pradesh and Telangana highlights this disconnect. Despite Dalit political mobilization, dominant SC sub-castes continue to monopolize reservation benefits, while smaller and more marginalized sub-groups remain persistently deprived.
- Petitioner has suggested criteria like economic status, financial capacity, living standards, vocation, and urban-rural divide for creamy layer classification.
- In State of Punjab v. Davinder Singh (1 August 2024), the Court held that:
- States are empowered to sub-classify SC/ST categories to correct internal disparities.
- The majority held that the creamy-layer principle applies to SC/ST affirmative action, but the criteria need not be identical to OBC criteria.
Proposal for Two-Tier Reservation System
- Reform aims to refine and target benefits better without reducing total reservation percentages.
- Emphasis on income-based prioritization, not abolishing caste-based reservation.
- This implies that those relatively well off in the SC/ST category will be considered for reservation only after the economically weaker section in the same category. So the relatively well off shall not be completely excluded owing to creamy layer classification of SC/ST which is the case with OBC’s.