8th October, 2003
Ministry of Social Justice & Empowerment  


NATIONAL COMMISSION FOR BACKWARD CLASSES TO REVIEW THE INCOME CRITERIA FOR EXCLUDING THE CREAMY LAYER FROM AMONGST OBCs


The National Commission for Backward Classes (NCBC) has been asked by the Government to review the income criteria for excluding the Creamy Layer from amongst the Other Backward Classes (OBCs). The Commission has also been told to evolve a formula for periodic revision of criteria and income ceiling for determining the Creamy Layer. It has also been directed to advise the government on, among other things, whether the Creamy Layer criteria will apply to the offsprings of persons belonging to excluded categories and whether the income for excluding should constitute only from salaries or from agricultural land or both. Another term of reference that the Commission has been asked to consider and advise the government is as to how income from sources other than salary or agricultural land is to be dealt with. Communicating the government’s decision, the Ministry of Social Justice and Empowerment has asked the NCBC to submit its report within three months.

The Supreme Court in November, 1992 in its judgement in Indira Sahni & Others v/s Union of India had directed the Central Government as well as the State Governments to specify the basis for applying the relevant and requisite socio-economic criteria to exclude advanced persons/ sections, popularly known as Creamy Layer, from OBCs. Subsequently an expert Committee headed by Justice Ram Nandan Prasad was constituted by the Government. The recommendations made by the Committee for excluding the Creamy Layer amongst OBCs was accepted by the Government.

Accordingly, the Department of Personnel and Training on 8th September 1993 issued an order stipulating that the rule of exclusion will apply to son (s) and daughter (s) of persons holding Constitutional positions. These include the President, the Vice-President, Judges of Supreme Court and High Courts, Chairmen and Members of the Union and State Public Service Commissions, Chief Election Commissioner, Comptroller and Auditor General of India, parents either of whom is a Class I Officer, parents either or both of whom is or are in the rank of Colonel and above in the Army and equivalent posts in the Navy and Air Force and the para-military forces. Families owning irrigated land, which is equal to or more than 85% of the ceiling limit in terms of irrigated land as per State land ceiling laws and the persons having gross annual income of Rs.1.00 lakh or above or possessing wealth above the exemption limits prescribed in the wealth Tax Act for a period of three consecutive years (income for salaries or agricultural land shall not be clubbed) are also excluded.