Govt. opposes income-based creamy layer in SC/ST quotas
SOCIAL – RESERVATION
7 AUGUST 2026
Background
- The Supreme Court is hearing petitions seeking the exclusion of the “creamy layer” from Scheduled Castes (SCs) and Scheduled Tribes (STs), similar to the system for Other Backward Classes (OBCs).
Centre’s Stand
- The Union Government opposed the petitions.
- It argued that judicial precedents have clearly held that the creamy layer principle does not apply to SCs and STs.
- Filed an affidavit through the Ministry of Social Justice and Empowerment.
Government’s Arguments
- Most welfare schemes for SCs, STs and OBCs already have a means (income) test, except:
- Reservations in educational institutions.
- Reservations in government jobs.
Reservation aims to:
- Achieve social equality and justice.
- Address historical discrimination.
- Promote economic empowerment.
- Ensure inclusive representation in education, public services and decision-making.
Legal Position
- The Centre argued that:
- The petitions do not raise any constitutional issue.
- They do not show any violation of fundamental rights.
- Petitioners have mis-stated facts by relying on judgments that, according to the Centre, referred to the creamy layer concept only in the context of OBC reservations.
Relevant Judgments
- M. Nagaraj v. Union of India , 2006
- The Centre said references to the creamy layer were general observations relating to OBCs, not SCs or STs.
- State of Punjab v. Davinder Singh, 2024
- A 7-judge Bench upheld sub-categorisation within SC and ST reservations.
- In a separate opinion, Justice B.R. Gavai suggested that the government should identify a creamy layer for SCs and STs, though using criteria different from OBCs.
- This observation has renewed the debate on applying the creamy layer concept to SCs and STs.
Current Status
- The Supreme Court had Issued notice to the Centre in February 2026.
- Sought an Action Taken Report after the 2024 judgment.
- No Action Taken Report has yet been filed, according to the article.
- The Centre has not clarified whether it supports applying sub-categorisation for SCs and STs at the national level.
- Telangana became first State to notify Sub- categorization of SCs in April 2025
