
IN A move that would increase the number of people getting the benefit of reservations in government jobs and educational institutions under the OBC quota, the Union government has revised the definition of ‘creamy layer’ for OBCs, increasing the income cap from Rs 6 lakh per annum to Rs 8 lakh per annum.
The proposal, drafted by the Ministry of Social Justice and Empowerment, had been pending before the Cabinet for more than a year now. Sources said the proposal was formally cleared by a sub-committee under Finance Minister Arun Jaitley, which met on August 21. Briefing the media after the Cabinet meeting on Wednesday, Jaitley said, “The Cabinet has been informed that the OBC creamy layer criteria, whose limit was Rs 6 lakh, has been increased to Rs 8 lakh.’’ He said those earning beyond Rs 8 lakh per annum would now fall in the creamy layer classification and that Prime Minister Narendra Modi had indicated at the move during his May 2017 address in Assam.
Earlier, the 27 per cent OBC reservation in central civil posts and services and central government educational institutions, could be availed of by those earning an annual family income of up to Rs 6 lakh. This is in keeping with the Supreme Court directive in the Indira Sawhney vs Union of India case where it said that the creamy layer of the OBC should not avail reservation facilities.