New Delhi: The Supreme Court has refused to grant immediate relief to the Centre in the ongoing dispute over the criteria for determining the OBC creamy layer, and has asked all parties to submit their responses by September 17, 2026.
A bench of Justices P.S. Narasimha and R. Mahadevan issued notice on the Centre’s plea seeking clarification on the applicability of the court’s March 11, 2026 judgment to candidates of the UPSC Civil Services Examination (CSE) 2025. The matter will be heard again on September 17.
What is the dispute?
In its March 11 judgment, the Supreme Court held that parental salary or income alone cannot be treated as the determining factor for deciding whether an OBC candidate falls under the creamy layer.
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The court said other factors, including the status and category of the parent’s post, along with the prescribed income and wealth criteria, must also be considered. The ruling particularly affects the treatment of children of employees working in PSUs and the private sector.
Centre seeks clarity over UPSC CSE 2025
The Centre has approached the Supreme Court arguing that applying the March judgment retrospectively to CSE 2025 could create significant practical difficulties.
The Department of Personnel and Training (DoPT) has sought permission to proceed with the service allocation of 958 candidates recommended by the UPSC using the creamy-layer criteria that were applicable before the March 11 judgment.
The CSE 2025 process had already progressed substantially before the judgment. The UPSC declared the final result on March 6, 2026, recommending 958 candidates for appointment to the IAS, IFS, IPS and other central services. The Supreme Court delivered its creamy-layer judgment just five days later, on March 11.
Government cites risk of unequal treatment
The Centre has argued that candidates participated in the examination based on the rules and administrative interpretation prevailing at the time.
According to the government’s argument, some candidates whose parents worked in PSUs or the private sector and whose income exceeded the applicable limit may have considered themselves ineligible for OBC non-creamy-layer benefits. Some may therefore have applied under the General category or not claimed OBC benefits.
A retrospective change could potentially lead to different treatment of candidates who were similarly placed when the examination process began. The Centre has also warned that reopening the creamy-layer determination could affect service allocation, cadre allocation, training and seniority.
No stay on March 11 judgment
Despite the Centre’s concerns, the Supreme Court has not stayed the March 11 judgment. Instead, it has sought responses from the parties before considering the government’s request.
The case will now come up for further hearing on September 17, when the court is expected to consider the Centre’s plea and the objections raised by the other parties.
The outcome could have implications not only for the 958 CSE 2025 candidates awaiting service allocation but also for the broader interpretation and implementation of OBC creamy-layer criteria in government recruitment and admissions.
