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Not reviewing reservation system, says govt; nod to panel for sub-quotas among OBCs, creamy layer limit up by Rs 2 lakh

The proposed commission will examine the extent of inequitable distribution of benefits of reservation among caste and communities, including the broad categories of OBCs included in the central list.

By: Express Web Desk | New Delhi | Updated: August 23, 2017 10:07 pm
Arun Jaitley, reservation, obc, backward class, suresh prabhu, public sector banks, psu consolidation, Arundhati Bhattacharya, SBI, indian express news, india news The Cabinet also raised the income limit defining ‘creamy layer’ for OBC reservation by Rs 2 lakh per annum.

The Union Cabinet on Wednesday ruled out having a relook at the reservation system in the country even as it approved setting up setting up of a commission for sub-categorisation within the other backward classes
for even distribution of reservation benefit.

RSS chief Mohan Bhagwat had in September, 2015 pitched for a review of the reservation policy, contending it has been used for political ends and suggested setting up of an apolitical committee to examine who needs the facility and for how long.

“Neither there is any proposal before the government, nor would there be a proposal (before it in the future),” Jaitley said when asked whether the government will review the reservation system as proposed by Bhagwat.

Jaitley, however, said that the government has approved setting up of a commission to examine the sub categorisation of backward communities in the central list to ensure that the benefits extended to OBCs reach all the communities.

Talking to reporters after the cabinet meeting, Jaitley said as many as 11 states, including Andhra Pradesh, Telangana, Jharkhand, West Bengal and the Jammu region in Jammu and Kashmir already have such categorisation in state government jobs.

There is no sub categorisation in the central list. The proposed commission will examine the extent of inequitable distribution of benefits of reservation among caste and communities, including the broad categories of OBCs included in the central list. The commission will submit its report in 12 weeks from the day it is set up.

“There will be more equitable distribution amongst the OBCs themselves (of the benefits),” Jaitley explained. The proposed commission, to be set up under Article 340 of the Constitution, will submit its report within 12 weeks from the date its chairperson is appointed.

According to a press release issued by the government, the panel will examine the “extent of inequitable distribution of benefits of reservation among the castes and communities included in the broad category of OBCs, with reference to the OBCs included in the Central list”.

It will also work out the mechanism, criteria, norms and parameters — in a scientific approach — for sub-categorisation within such OBCs. The commission will also undertake an exercise of identifying the respective castes/communities/ sub-castes/synonyms in the central list of OBCs and classifying them into their respective sub-categories.

The Cabinet also raised the income limit defining ‘creamy layer’ for OBC reservation by Rs 2 lakh per annum. The ministry of social justice and empowerment had proposed that OBC families which earn more than Rs 8 lakh per year should be classified as ‘creamy layer’ -— the ceiling which bars members of the other backward classes from availing reservations in employment.

There had been three revisions of the creamy layer bar. It was fixed at Rs one lakh in 1993 and hiked to Rs 2.5 lakh in 2004 and Rs 4.5 lakh in 2008. The present ceiling of Rs six lakh came into being in 2013.

(With inputs from PTI)


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  1. N
    Nitin Nagesh
    Aug 24, 2017 at 10:36 pm
    I still feel reservation is necessary till the average per capita reaches Rs. 12K per month. Only change is that once the family gets reservation same family should not be given benefits in reservation since their capita income would have been increased. Rhis wouls make sure that real poor will get the benefit. For example a Chief Engineer or Director belonging to SC or ST, son or daughter still gets the reservation benefit of reservation. Where as the real poor will be deprived. This may be made applicable to SC, ST and OBC.
    1. S
      Aug 24, 2017 at 5:49 am
      An economics professor had to fail an entire class because the class had insisted that socialism worked. Professor set an experiment in the class - All grades will be averaged and all will receive the same grade. After the first exam, all grades were averaged and everyone got B grade. Students who studied hard were upset and students who studied little were happy. For the next exam, those who studied little studied even less and those who studied hard, studied little for a free ride. Second test average was D grade. No one was happy. In the third test, average fell to an F grade because no one would study for the benefit of anyone else. When 27 percent get the idea that they do not have to work because the other 73 is going to take care of them through equalization, and the 73 get an idea that it does no good to work because someone else is going to get what they woeked for, that is the begining of the end of a nation, Mitron :)
      1. Manas Sarkar
        Aug 24, 2017 at 5:23 am
        Yearly 8 laks and still poor, really funny. Vote politics only. BJP is similar to other political parties in this manner. Only extremely poor, income less than 2 laks should get benefit of SC, ST and OBC.
        1. M
          Aug 24, 2017 at 3:56 am
          NO Government in India can do away with this damaging ADDICTION to 'Reservation'.. Addictions are NOT easily cured. Indian Media has REINFORCED a narrative on "Social Equality" that has deliberately exaggerated small incidents into National Disasters. In the four or five Ins utions I am familiar with, NONE of my Hindu Colleagues ever wanted to know the 'caste' of any other colleague, unless the person himself or herself wanted to mention it. In India, there is NO free speech when it comes to 'Reservation' and Creamy Layers.... but total FREE speech to abuse Manu and praise Mondal, although it is Mondal who is UPHOLDING the Caste System, right now. MERIT is IRRELEVANT in India. If anyone with Merit wishes to emigrate to the West, I will NOT blame him or her, as long as he or she is prepared to struggle during the first few years in the new country. There are problems of different kinds there too.
          1. S
            Aug 23, 2017 at 11:33 pm
            What of votes does this guarantee? When it comes to votes and money, all parties are the same. They will fight to outdo one another. No party wants to tell us who are the top defaulters in the country. They would rather tax the common man at every possible opportunity, be it the petrol pump or for basic banking services. No party will ask people with reservation to voluntarily give-up their claim if they are well off.
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