Centre Opposes Income-Based "Creamy Layer" Exclusion in SC/ST Reservation Before Supreme Court
The Union government, through the Ministry of Social Justice and Empowerment, filed an affidavit opposing petitions before the Supreme Court that seek an income-based "creamy layer" sub-classification within Scheduled Caste (SC) and Scheduled Tribe (ST) reservation.
The petitions, including one filed by Ramashankar Prajapati and others (W.P.(C) No. 682/2025) and another by an advocate, seek a "merit-cum-means" approach — directing the exclusion of economically better-off individuals from SC/ST reservation benefits, similar to the creamy layer principle applied to Other Backward Classes (OBCs).
The Centre's affidavit argues that identification of SCs and STs rests on historical and social backwardness rather than economic status alone, and that any change to who qualifies as SC/ST can only be made by Parliament through law, not by judicial direction to the executive.
The Centre further submitted that any policy shift on income-based exclusion within reserved categories would require a holistic review and empirical socio-economic study, not a one-off judicial directive.
The matter remains pending before the Supreme Court, which had earlier issued notice on the lead petition.
Articles 341 and 342: Constitutional Basis for SC/ST Identification
Article 341 empowers the President to notify castes, races, or tribes (or parts/groups within them) as Scheduled Castes for a given state or union territory, after consultation with the Governor where applicable; Article 342 provides an identical mechanism for Scheduled Tribes. Once notified, this list can be amended only by Parliament through law — not by the President's subsequent notification, nor by any court or state government.
The Centre's core constitutional objection to the pending petitions is jurisdictional: excluding a creamy layer from SC/ST would alter who is treated as belonging to the notified list, which Articles 341(2)/342(2) reserve exclusively to Parliament.
Indra Sawhney v. Union of India (1992): Origin of the Creamy Layer Principle
A nine-judge bench of the Supreme Court, deciding the Mandal Commission reference on November 16, 1992, upheld 27% reservation for OBCs in central government jobs while introducing the "creamy layer" doctrine — the principle that socially advanced members within a backward class must be excluded from reservation benefits, since they no longer share the disadvantage that justifies preferential treatment.
The pending petitions effectively ask the Court to extend a principle Indra Sawhney developed for OBCs to SC/ST reservation — the Centre's opposition rests substantially on confining that precedent to its original OBC context.
State of Punjab v. Davinder Singh (2024): Sub-Classification and the Creamy Layer Question for SC/ST
A seven-judge Constitution bench, on August 1, 2024, held by a 6:1 majority that state legislatures can sub-classify Scheduled Castes for reservation purposes to extend preferential treatment to the most disadvantaged sub-groups within the SC list, overruling the earlier five-judge ruling in E.V. Chinnaiah v. State of A.P. (2004) that had barred such sub-classification.
Petitioners likely draw on the creamy layer observations in Davinder Singh (2024) to argue judicial support exists for excluding well-off SC/ST individuals; the Centre's affidavit counters by distinguishing the binding holding (sub-classification is constitutionally permissible) from the non-binding observations on creamy layer, and by reiterating that any such exclusion requires parliamentary legislation, not the Court's directive.
Distinguishing "Sub-Classification" from "Creamy Layer Exclusion"
These are two separate, sometimes conflated, reservation concepts relevant to current SC/ST policy debates. Sub-classification creates internal categories within SC/ST reservation to prioritise the most disadvantaged sub-groups (permitted since Davinder Singh, 2024). Creamy layer exclusion removes economically/socially advanced individuals from reservation eligibility altogether (settled law only for OBCs, per Indra Sawhney, 1992, and reaffirmed for OBCs specifically in later rulings such as Ashoka Kumar Thakur v. Union of India, 2008).
Key Details
- Sub-classification requires the state to identify empirical inter-se backwardness data among SC sub-groups, a requirement the Supreme Court underscored in Davinder Singh (2024).
- Creamy layer exclusion for OBCs is operationalised through income/status ceilings prescribed via central government office memoranda (periodically revised, most recently a gross annual income ceiling in the several-lakh-rupee range, distinct from any SC/ST norm).
- No statutory or constitutional creamy layer ceiling currently exists for SC/ST reservation; introducing one would require either a constitutional amendment process or parliamentary legislation altering the effect of Articles 341/342, per the Centre's stated position.
The current litigation sits precisely at the boundary between what is already permitted (sub-classification, post-2024) and what remains contested and, per the Centre, requires parliamentary action rather than judicial direction (creamy layer exclusion from SC/ST reservation).
- Lead petition: Ramashankar Prajapati & Ors. v. Union of India, W.P.(C) No. 682/2025; notice issued August 2025.
- Indra Sawhney v. Union of India — decided November 16, 1992, by a nine-judge bench; introduced creamy layer for OBCs and a 50% reservation ceiling under Article 16(4).
- E.V. Chinnaiah v. State of A.P. — decided 2004 by a five-judge bench; barred SC sub-classification; overruled in 2024.
- State of Punjab v. Davinder Singh — decided August 1, 2024, by a seven-judge bench, 6:1 majority; permitted SC sub-classification for reservation.
- Articles invoked by the Centre: Article 341 (SC identification), Article 342 (ST identification), both amendable only by parliamentary law under clause (2) of each.
- Article 342A (102nd Amendment, 2018): parallel mechanism for the Central List of SEBCs/OBCs.