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UIC T RAH aV29{ Bane F—Joae rE3 Wa
No,38032/3/2004-Estt. (Res.}
Goverment of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Ae ‘New Delhi, dated the 14" October, 2008
QEFICE MEMORANDURt
Subject- Revision of income crtena to exclude socially advanced
persons/sections (Creamy Layer) from the purview of reservation
for Other Backward Classes (BCs).
The undersigned Is directed 10 Invite attention ta this Department's O.M
No.26012/22/93-Estt (SC1) dated 8" September, i993 which inter alla provided
that sons and daughters of persons having gross annual incoma of Rs.1 lakh
‘ar above for a pariad of three consecutive. years would fall within the creamy
layer and would not be entitled to gat ihe benefit of reservation available to the
Other Backward Classes. The limit of income for determining the creamy layer
status was raised to Rs. 2:5 lakh vide thls Department's OM of.even number
dated 9.9.2004. It has now been decided to raise the income limit from Re. 2.5
lakh to Rs. 4.5 lakh per annum for determining the creamy layer amongst the
OBCs. Accordingly tha following entry is hareby substituted for tha existing
‘entry against Category. VI in the Schedule to the above referred O.M.
Catenory Deserintion of Category. Towtom the nie of exclueion will
apply .
vl incamaWealth Test Sonfs) and daughter(s) of
{a}Persone having gross anqual
income of Rs, 4.6 lakh ar abave
ortpossessing wealth above the
‘exemption limit as prescribed in
the Wealth, Tax Act for pertod of
thee consecutive years.
(b)Persons in Categories |, Il, U
and V A who ere not disentitled to
the benefit of reservation ‘but
have income from otter sources
of wealth which will bring them
within the income/weaith criteria
mentioned in (a) above,
Explanation:
Income from salaries. or
agricultural land shall not be
clubbed,pmvisions of this Office Memorandum take effect irom
2090.
z
4 Ail he Min'sties/Departments are requested to bring the contents of this
Office Memorandum tc ine notice of all concamed,
(KC Verma)
Director
Allthe Ministries/Departments of the Government of India.
Department of Economic Affalrs (Banking Division}, New. Dethi
Department of Economic Affairs (Insurance Division), Naw Dalhi.
Department of Public Enterprises, Naw Delhi.
Reilway Board
Urton Public Service Commission’Supreme Court of India/Election
Commission ok Sabha ‘SecretariatRajya Sabha SecrolariatGabinet
SecreteriavCentral —Vigllaree —“Comynission’ ——Presidant’s
Secretaria/Prime Minister's Office/Pianning Commission,
7 Staff Ssieotiun Commission, CGO Complex, Lodiii Raad, New Delhi.
8 Ministry of Social Justice and Empawerment, Shasin Ehavan, New
Delhi. 7
9. National Commission for SCs and STs, Lok Nayak Bhavan, New Delhi,
10. National Commission for Backward Classes, Trikaoi-1, Bhikaii Gama
Place, Ri. Purain, New Delhi.
11, Office of the Comptroller and Auditor General. af ‘india, 10
Bahadurshah Zefar Marg, New Delni- 110002,
12. Information and Faciltalion Centre, DOPT, North Block, New Delhi.
(100 copies)
13, Spare copies — 400.
DoaeNe
Copies tonwarded to
The Chief Secretaries of all the States/ UTs. for information and
Necessary action.
FER IIG IH4
No, 1-1/2008-U.IA,
Government of india
Mipisiry of Human Resource Development
Department of Higher Education
ve Sheatid Bhavan, New Delhi
Wwe j Dated 13" Ociober 2008
OFFICE MEMORANDUM
Subject, Rewsion of Income criter'a to exclude soolally advanced
persansissctions (Creamy ayer) trom Other Backward
Classes (OHCs)
!
L
Fellowing the decision ef tne Supreme Court delivered on
16.14.1992 in the case of Indra Sawhney and cthers Vs. Union of India and
others, the Goverment of india had constituted an Expert Committee to make
recommendations on the socio-aconomic criteria ta be adopted for excluding the
“Creatay Layer’ from amongat QBCs. The report of the Expert Committes was
considera and accepled by tha Government and the categories of the
Persansisections to be excluded from the purview of the reservation orders far
OBC: were ratified In the achedule to the Office Memorandum No, 38012/22/93-
aw Estt(SCT] dated 08.09.1993 issued by the, Department of Personnel and
Traning (DOPT)
ef 7 ne ‘Sommittee while specifying the criteria for apptication of the rule of
excliéion of socialy advancad ersans amongst OBGs, wnter-alia; recommended
review of income cliteria after every threa years. The Committee observed
nigieite, Giga "Since the rupee value is bound to undergo change, the income criteria in
~ terms of rupee as stated above, wit! accordingly stand modified with the
change In velue of rupea, The modification exercise may, normally
speaking, be undertaken every three years but if the situation 60 demands
the interregnum may be less.”
3. __ Keeping in view the above recommendations of the Expert Committee,
the Government of India decided to constitute a review Committee to consider
ye the issue of modification of the incoma criteria laid down ‘by the Expert
INAS, —_Comminee for exclusion of OBCs aa par Creamy Layer concept.
‘
>» Yas Of 4. Subsequentiy, it was decided that the work relating to review of income
criteria ta exclude crasmy layer from O8Ca may be entrusted to the National
\ Commasion, ‘or Backward Classes (NCBC). On the basis of the
L recoramendation of the NCBC, the income limit for determining the Creamy
mS iS Layer among the backward classes was raised from Rs. 1.00 lathe te Re. 2.6
lakhs ana DOPT issued an OM No, 36023/3/2004-Eslt Res.) cated 8” March
me 2004 to this eect.
* Vv 5. As the Creamy Layer criterion was ic be revised after expiry of three
< years from the iast revisien. the NCBC wae again ssquested on 27.12 2007 to&
femuw ihe gesting celkng of incameiwealih te determe tne Creamy Layer
amongst ne OFS
& The NOBC consingred the socio-economic development of the Other
Backward Classes appearing n various surveys and reporte puolished by the
Eoyt, of Incha ard also tock into consideration the increasing trend in.the GOP,
net pe" capita ncame, all round economic growth, acceleration In inflation in
pimary commecities and continued high escalation in price of the commodities in
feet group. There hws been a steady increase in the costs for madiesi, transport
and eduzation. ‘The raconumendalion of the Sixth Central Pay Commission
Fecommensing the exisling rates cf most of ihe allowances to ba doubled anc
ras aso been taken note of, The Commission taking into consideration the
move (actors and tre time by which the report will be accepted and
impemented =rived ata figura of Re, 4.5 lakh3,
7 The Covamssior submitted its reporté on the 1.7.2008 to the Government
of India and recommendea that “The Income limil tor determining the creamy
‘ayer among Otner Elacxward Classee (OBC) be reised fram Re, 2.8 lakhs to Re.
4. Siakhs™
& With the approval of the competent authority, the recommendation of the
NCBC was aecepteo to raise the income limit for determining the creamy layer
among other backward classes (OBCa) from Rs. 2.5 lakhs to Rs. 4.50 laks
accordingly, ira 2xisting entry against category VI in the Schadule to the OM No.
'36033/2/2004-Eot(Res.) dated 9" March 2004 seued by the DOPT of gross
Jnnual income-of As. 2.5 lakhs, shall ba read as Rig. 4.6 lakhs for the purpose of
doorminaton of creamy layer for admission of OBC candidates into the Central
Educaficnai Institutions. -
8 The provision of this Ofice Memorandum takes effect immediately in
respect of admiss‘ons into Central Educationat Institutions.
frupone
aug Sects, (ANUPAMA BHATNAGAR)
Sah mateith ae. DIRECTOR
,
a
4\| the Min'strles/Depattments of the Govt, of India
State Governments
Union Territory Administrators
Statulory bocies responsible for maintenance or dsiermination cf
stanaards of education
All Centra; 2ducational Institutions
BoM
Cq-ARI I