April 10, 2008 - In a landmark judgement, the Supreme Court on Thursday upheld the legislation providing 27% quota for other backward castes (OBCs) in centrally funded educational institutions, including IITs and IIMs.

The economically well off, also known as the “creamy layer” from amongst the OBCs, however, will remain out of the quota’s ambit. A review of the quota’s continuation would have to be done every five years, the apex court said.

The decision by a five-judge Constitution bench headed by Chief Justice KG Balakrishnan is to be implemented from this year. This means that IITs and IIMs, which were to declare results for the 2008-2009 academic session on Friday, will have to factor in 27% quota for OBC candidates before announcing the results. The bench arrived at the decision after concluding that the 93rd amendment made in the Constitution, empowering the Centre to formulate special laws for OBC reservation in educational institutions of higher learning, was “not violative of the basic structure of the Constitution.” Similarly, it also held that the legislation passed by the UPA government in 2006, providing for OBC quota, did not go against the grain of the Constitution.

The first to be impacted by the crucial judgment were the 1,500 students getting ready for the Indian Institutes of Management (IIMs) in the country. Within hours of the verdict coming in, the six IIMs decided to defer admission of fresh batches and wait for the central government direction on 27 percent reservation for OBCs.

he bench, including Justices Arijit Pasayat, C.K. Thakkar, R.V. Raveendran and Dalveer Bhandari, also sought a time-bound review every five years of the effect of the law on the society.

The creamy layers among the OBCs that would not be eligible for the quota include sons and wards of serving as well as former presidents, vice president, prime ministers, ministers, chief ministers, judges of the Supreme Court and high courts, bureaucrats and commissioned military officers.

As consternation spread in campuses all over the country, Human Resource Development (HRD) Minister Arjun Singh said Thursday that the verdict would not affect "any other category of students".

The minister assured students that the percentage of seats would be increased in places like the IIT and IIM.

Supreme Court Judgment Summary on 27 % OBC Quota in Educational Institutes

1 SC Judgment Summary A

2. SC Judgement Summary B

3. SC Judgement Summary C

Full Text Of Supreme Court Judgment on OBC Quota (Available here - Ashoka Kumar Thakur Vs. Union of India and Ors)

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