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Supreme Court says income alone cannot determine OBC ‘creamy layer’ status

The top court's judgment comes in a case aimed at resolving decades-long confusion over the application of the income/wealth test under the 'creamy layer' rules.
March 13, 2026 / 16:04 IST
The top court rejected the plea of Centre which had insisted on income/wealth test criterion

The Supreme Court of India has said that parents’ income alone cannot be the sole basis for excluding a candidate from the Other Backward Classes (OBC) quota under the “creamy layer” rule. The court stressed that the status and category of the parents’ jobs must also be considered, with the income or wealth test serving only as an additional criterion for exclusion.

The top court's judgment delivered on March 11  came in a case aimed at resolving decades-long confusion over the application of the income/wealth test under the “creamy layer” rules. The issue particularly concerned Other Backward Classes (OBC) candidates whose parents work in Central or state public sector undertakings or in the private sector, where the equivalence of their posts with government positions had not yet been clearly established.

Currently, the threshold income to determine "creamy layer" is Rs 8 lakh per annum.

 

Moneycontrol News
first published: Mar 13, 2026 04:00 pm

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