Centre cites Sinho Panel creamy layer note to defend EWS income cap in Supreme Court

The Centre has defended the Rs 8 lakh annual income criteria for the 10% economically weaker section (EWS) quota in Supreme Court, by citing the still undisclosed Sinho Commission report which specifically mentioned that the income criteria used to determine the OBC creamy layer "could well serve to decide the upper limit" for identifying the EWS among general category.

In a 15-page affidavit filed on Tuesday - after the Supreme Court (SC) questioned the logic behind arriving at the annual income ceiling of Rs 8 lakh - the Centre has relied primarily on the Sinho Commission report but has also said that it is not the 'sole basis' for determining the income ceiling.

While it had also cited the report while passing the law in Parliament, its affidavit now has pointed to other exclusionary elements from its 2019 office memorandum.

These include land holding, house ownership, coverage by existing welfare schemes and assets, among others to identify deserving beneficiaries of the EWS quota.

The key citation on income criteria, however, is from pages 97, 98 of the report of the Sinho Commission.

"This commission had, by its report of July, 2010, arrived at various conclusions including that the criteria to identify 'Creamy Layer' amongst OBCs could well serve as a basis to decide the upper limit or as a criterion for identifying economically backward class (EBC) amongst the general category as well", says the Centre's affidavit.

It further adds that the commission did offer alternative income criterion as well.

It recommended that "below poverty line (BPL) families from the general category, whose annual family income from all sources is below the taxable limit (as may be revised from time to time), may be identified as EBCs".

The Centre, however, adds that although the Sinho Commission report is one of the aspects taken into consideration, the income criteria now fixed is not 'the sole basis' for determining the income criteria but the result of 'serious consideration that had already taken place to determine the criteria in the context of OBCs'.

"The exercise conducted to determine the Creamy Layer for the purpose of OBC reservation would be equally applicable for determination of EWS category since the fundamental premise is that that if a person/his family have a substantial economic standing, he/she may not require the benefits of reservation at the cost of others", it has said in the affidavit.

It has held that the principle of fixation of Rs 8 lakhs as a criterion for determination of EWS as also for determination of Creamy Layer in the OBC category is 'rational and in keeping with Articles 14, 15 and 16 of the Constitution'. It was not 'arbitrary' and was arrived at after taking into consideration 'the diverse economic factors in different states as also the diverse economic status between rural and urban areas' and fixed after taking into consideration the test for determination of 'Creamy Layer', says the Centre's affidavit.

The Rs 8 lakh 'creamy layer' income ceiling is based on the Consumer Price Index, the Centre has pointed out.

The Centre has also pointed to the petitioner's vague assertions and its possible 'far reaching and serious consequences on several employment and admissions already done and in the pipeline' .

The education ministry was permitted Rs 4,200 crore funds for creation of an additional 2.14 lakh seats across 158 educational institutes to implement the 10% EWS quota.

Well over a lakh admission have been done under the EWS quota since 2019 across 158 central educational institutes including Central universities, IITs, IIMs, IISERs etc.

The Centre brought in the Constitution (One Hundred and Twenty-fourth Amendment) Bill, 2019 allowing for the 10% EWS quota in education institutes and government employment in January 2019, just ahead of Lok Sabha elections.