Salary from private sector employment cannot be excluded in ‘Creamy Layer’ assessment: Kerala HC
The Kerala High Court ruled that salary income from private sector employment must be included when assessing whether an individual falls under the 'Creamy Layer' category for reservation benefits. The court emphasized that excluding such income would undermine the purpose of reservation policies for truly deserving candidates.
Why it matters
This judicial clarification impacts how reservation benefits are distributed in India, ensuring that high-income earners do not unfairly access quotas intended for the economically disadvantaged.
Excluding the salary income of individuals employed in the private sector would lead to anomalous situations contrary to the principles of the constitution of ‘Creamy Layer’, observed the Kerala High Court.
The Bench made the observations in a petition filed by two students to include them in the ‘non-creamy layer’ category for claiming reservation in admissions to professional degree courses.
Justice Bechu Kurian Thomas held that the students were not entitled to the non-creamy layer certificate, since both their parents have high income and wealth, exceeding the ₹8 lakh limit prescribed for assessing the category.
The test for including individuals employed in the private sector in the Creamy Layer category is to assess their income and wealth. The students had contended that, as per law, the salary income was liable to be excluded and that they were entitled to a Non-Creamy Layer certificate to claim the benefit of reservation.
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