Beyond salary: Supreme Court upholds landmark OBC creamy layer verdict, rejects centre’s request for time

NEW DELHI: The Supreme Court has reaffirmed that the creamy layer status of OBC candidates must not be determined solely on the basis of their parents' salaries. Instead, the social status, official position, designation, and socio-economic circumstances of parents must be assessed individually in each case.

A Bench comprising Justices P.S. Narasimha and R. Mahadevan made it clear that it was not inclined to reconsider its March 11, 2026 verdict. The court rejected the Centre's request for two years to implement the ruling and directed it to do so within eight weeks. The original judgment had granted six months for implementation.

The court also reiterated that employees of public sector undertakings (PSUs) and banks should not be treated differently from government employees merely on the basis of their salaries while determining creamy layer status. The Centre had sought additional time to establish a uniform mechanism for implementing the ruling.

Verdict also applies to Civil Services

The rank list of 958 candidates who appeared for the 2025 Civil Services Examination was published five days before the Supreme Court delivered its March 11 verdict. The Centre had sought permission to proceed with appointments under the existing rules. However, OBC candidates opposed the request, insisting that the appointments should comply with the court's directions.

The Supreme Court directed that service allocation for OBC candidates selected through the 2025 Civil Services Examination must be carried out in accordance with the principles laid down in its judgment. The court also clarified that appointments and selections completed before March 11, 2026, would not automatically be reopened, nor would existing seniority positions be disturbed solely on account of the verdict.

Aspirants welcome verdict

The latest development marks another victory in the prolonged legal battle waged by OBC candidates, including those who appeared for the Civil Services Examination in 2012. Despite performing well in the examination, several candidates had been denied appointments after being classified under the creamy layer. Candidates from Kerala, Delhi and Tamil Nadu approached their respective High Courts seeking non-creamy layer status and secured favourable verdicts. The Centre subsequently challenged these orders.

The Supreme Court dismissed the Centre's appeals on March 11, ruling that the candidates who had approached the courts belonged to the non-creamy layer category and were entitled to reservation benefits and government appointments. By refusing to reconsider its decision, the court has reaffirmed the principles governing the determination of OBC creamy layer status.