The Supreme Court on Thursday reserved its judgment on the Union Government’s application seeking prospective operation of its March 11, 2026 judgment laying down the parameters for determining the creamy layer status of candidates belonging to the Other Backward Classes (OBC).
A Bench comprising Justice Pamidighantam Sri Narasimha and Justice R. Mahadevan heard the Centre’s plea, in which the government has sought a limited deferment of the implementation of the judgment and a window of two years to put in place the necessary mechanism for its operationalisation.
The March judgment had held that the salary or income earned by a parent employed in a public sector undertaking or the private sector cannot, by itself, determine whether an OBC candidate falls within the creamy layer. The Court had emphasised that the nature, status and category of the post held by the parent must also be examined along with the applicable income or wealth criteria under the existing framework.
The Centre has contended that immediate or retrospective application of the ruling could unsettle appointments, admissions and recruitment processes that were undertaken under the rules and certificates prevailing at the relevant time. According to the government, such implementation could have repercussions for OBC-NCL status, seniority, cadre allocation, service conditions and career progression of candidates who were not parties to the original litigation.
Additional Solicitor General Aishwarya Bhati, appearing for the Centre, sought a period of at least two years to undertake an exercise for determining equivalence between posts in PSUs and private establishments and corresponding Group A and Group B government positions. The Centre maintained that the request was not intended to dilute or review the March 11 judgment, but only to defer its operationalisation so that competing rights and administrative consequences could be appropriately addressed.
The government has particularly flagged the possible impact on recruitment processes already completed or underway. It has argued that applying the altered eligibility framework to past selections could result in changes to appointments, service allocation and seniority, with consequences extending beyond the candidates who had originally approached the courts.
The March 11 judgment arose from disputes concerning OBC candidates whose claims had been affected by the treatment of their parents’ employment and salary income while assessing creamy layer status. The Supreme Court had held that treating salary income as the determinative factor, without examining the status and category of the parent’s post, could result in unequal treatment of similarly situated OBC candidates.
The Centre’s latest plea follows its earlier applications seeking clarification regarding the applicability of the March ruling, including its implications for candidates of the Civil Services Examination. The government has also raised concerns over proceedings concerning the judgment pending before various High Courts.
The respondents have opposed the Centre’s request, contending that the application effectively seeks to dilute the effect of a judgment already rendered by the Court. The Supreme Court, after hearing the rival submissions, has now reserved its judgment on whether and to what extent the March ruling should operate prospectively.
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