The 'creamy layer’ from backward classes cannot be solely determined on economic criterion Supreme Court decision

The Supreme Court in Pichra Warg Kalyan Mahasabha Haryana (regd) & Anr vs the State of Haryana & Anr. has held that the State of Haryana has committed a grave error in determining 'creamy layer’ from backward classes, solely based on economic criterion. A division bench of Justice L Nageshwar Rao and Justice Anuradha Bose noted, "The criteria mentioned for identifying such persons who are socially advanced have not been taken into account by the Government of Haryana while issuing the notification." The petition had been filed challenging the notification issued by the Haryana Government for identification of 'creamy layer' amongst the backward classes in the State of Haryana and their exclusion from the purview of reservation in services and admissions of educational institutions in Haryana State. The plea stated that the State of Haryana has issued a notification under section 2 (d) & 5(2) of Act, 2016 specifying ‘creamy layer’ among backward classes. That as per this notification, ‘creamy layer’ is specified solely on economic basis and that too in 2 slabs (For reservations first preference was given to persons having annual income between 0-3 Lac and leftover seats for persons having annual income between 3-6 Lakh). The Court noted, "After thoroughly examining the factors which were given emphasis in the various opinions rendered in Indra Sawhney-I for determining ‘creamy layer’ amongst the backward classes, this Court held that persons from backward classes who occupied posts in higher services like IAS, IPS and All India Services had reached a higher level of social advancement and economic status and therefore, were not entitled to be treated as backward. Such persons were to be treated as ‘creamy layer’ without any further inquiry. Likewise, people with sufficient income who were in a position to provide employment to others should also be taken to have reached a higher social status and therefore, should be treated as outside the backward class." Whereas, while dealing with the issue of the validity of the notification the bench observed that the criteria mentioned for identifying such persons who are socially advanced have not been taken into account by the Government of Haryana while issuing the notification dated 17.08.2016. The Court struck down the notification of 2016 while giving liberty to the Haryana Government to issue fresh notification within a period of 3 months in accordance with the principles laid down by the Supreme Court in Indra Sawhney-I and the criteria mentioned in Section 5(2) of the 2016 Act.