Centre Seeks Two Years to Frame OBC Creamy Layer Criteria for Children of PSU & Private-Sector Employees

Centre Seeks Two Years to Frame OBC Creamy Layer Criteria for Children of PSU & Private-Sector Employees

The Central Government has told the Supreme Court that it needs around two years to formulate a clear policy for determining the OBC creamy-layer status of children whose parents work in Public Sector Undertakings (PSUs) and the private sector.

The key issue is how a parent's position, employment status and income should be assessed to determine whether their child falls within the OBC creamy layer and is therefore excluded from reservation benefits.

The Centre has also raised concerns about retrospective implementation, arguing that it could create complications involving the status, cadre, posts and service conditions of candidates who are already serving, as well as lead to significant litigation.

What it means: This development does not mean OBC reservation is being removed, nor does it mean a new creamy-layer rule has already come into force. The matter concerns establishing clearer criteria for determining creamy-layer status, particularly for PSU and private-sector employees' children.

Current Status: The Centre has requested two years to frame the policy. A request for two years should not be confused with the Supreme Court having already granted that period.

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