SC: Economic Criterion Cannot Be Sole Basis For Identifying Creamy Layer

Background

• The case was Pichra Warga Kalyan Mahasabha Haryana v. State of Haryana.
• A notification which was issued by the Haryana State Government specified the criteria for excluding the creamy layer in backward classes.
• The High Court had held that making sub-classification in non-creamy layer segment is unconstitutional since there is no data to justify the same.
• An organization challenged the constitutionality of the notification before the Supreme Court, contending that social, economic and other factors need to be considered.

Contentions of the Husband

• The reservation benefit in services and admission to educational institutions would be given to children of persons having annual income up to Rs. 3 lakh.
• The remaining quota would be given to the class earning more than Rs. 3 lakh but less than Rs. 6 lakh per annum.
• Backward classes with an annual income more than Rs. 6 lakh would fall under the Creamy Layer category according to Section 5 of the Haryana Backward Classes (Reservation in Services and Admission in Educational Institutions) Act.

Court Order

• Economic criterion cannot be used as the sole basis for identification of the creamy layer.
• The notification of the Haryana Government was quashed by the Court.
• The Government was given the liberty to issue a new notification considering the principles laid down in the Indra Sawhney case and the provisions laid down in Section 5(2) of the Act.
• The admissions for educational institutions and state services were not to be disturbed.

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