Friday, February 21, 2020

In major change, govt may include salary to decide OBC ‘creamy layer’

Subodh.Ghildiyal@timesgroup.com

New Delhi:21.02.2020

Proposing a major change in the concept of ‘creamy layer’ for OBCs, the government may rule that ‘salary’ be considered a part of ‘gross income’ to decide if a backward class individual is eligible to avail of Mandal reservations in public employment and education.

Top sources in the ministry of social justice and empowerment said inclusion of salary in calculating the creamy layer for OBCs was decided as per the recommendations of an expert committee. A proposal to this effect is likely to be moved for the government’s consideration.

If the move goes through, it will significantly raise the bar to qualify for the 27% quota benefits as more are likely to be excluded as ‘creamy layer’ — the cut-off that rules an OBC as affluent.

As per the guiding 1993 Office Memorandum on creamy layer, ‘salary’ and ‘agricultural income’ are not included in ‘gross income’ which only comprises ‘income from other sources’. In contrast, factoring in salary would make it much easier to qualify an OBC as affluent. Observers believe the decision will be controversial with the backward castes.

While the 1993 OM is clear on the subject, confusion arose after the Centre, over the last six years, started including salary in case of OBCs from PSU backgrounds while continuing to exclude it for those working in state and Union governments.

Social justice min to review income ceiling for creamy layer

It lowered the bar for disqualification from quota in case of the first category and triggered court battles. Madras and Delhi high courts termed the practice “discriminatory” and asked the Centre to remedy the situation in favour of OBCs from PSU backgrounds.

An expert committee was appointed in March 2019 to resolve the situation. As reported by TOI, the panel suggested that the Income Tax Act be made the benchmark to calculate the creamy layer cut-off for all OBCs across the board. The I-T Act includes ‘salary’ and ‘other sources’ but leaves out ‘agri income’.

According to sources, the social justice ministry has also decided to review the income ceiling for creamy layer, as is mandatorily done every three years and was last effected in 2017.

The expert panel is learned to have recommended that income ceiling should be ‘indexed’ to a fixed parameter to decide the quantum of raise, as against the subjective revision done till now.

Sources said the income ceiling could be increased from the present ₹8 lakh per annum to above ₹11lakh.

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