The Supreme Court reaffirmed that parental income alone cannot determine the creamy layer status of Other Backward Classes (OBCs) and extended the Centre's implementation deadline by eight weeks.
The 1993 Office Memorandum (OM) excluded salary and agricultural income from the income test, while a 2004 Department of Personnel and Training (DoPT) clarification included salary income from private and public sector jobs.
The Court ruled that the creamy layer status must be assessed using the 1993 OM as interpreted in its March 11, 2026 judgment.
The ruling applies to the candidates and intervenors who were parties to the original cases; it does not reopen completed selections, appointments or seniority.
For the Civil Services Examination (CSE) 2025, the Court directed that the revised interpretation must govern the allocation of services to selected OBC candidates.
The Court stated that similarly placed candidates with pending cases may seek consideration on their individual merits.