Is there unequal distribution of benefits under existing reservation policy? SC to consider

Implementing an income-based preferential selection mechanism within SC, ST, OBC and EWS reservations is imperative for ensuring a more just and equitable distribution of opportunities, court has been told.;

Update: 2025-08-11 11:33 GMT

The Supreme Court today issued notice on a plea seeking framing of policies for a more equitable and just system of reservation in government employment and educational opportunities.

Seeking to ensure equitable distribution of reservation benefits on a merit-cum-means approach, the instant petition has been filed by persons who belong to the Scheduled Caste (SC) and Other Backward Classes (OBC) categories.

Highlighting the economic disparities within these communities, which have led to an inequitable distribution of benefits, the plea filed under Article 32 submits, "While the reservation framework was initially introduced to uplift historically disadvantaged communities, the current system disproportionately benefits people belonging to relatively well-off economic strata and high social status backgrounds within these groups, thereby leaving the most economically deprived members with limited access to opportunities...".

The petition calls for an urgent need to integrate economic criteria into the reservation policy to ensure that benefits are conferred upon those who genuinely require state support. "This reform proposal does not seek to abolish or undermine caste-based reservations but rather to refine them to serve their intended purpose more effectively. By introducing an income-based prioritisation mechanism within SC, ST reservations, the proposed framework aims to prioritise opportunities for the most disadvantaged individuals amongst the SC-ST communities. The necessity of such an approach stems from the fact that over the past 75 years, reservations have disproportionately benefited a select few within the reserved categories, creating intra-community economic disparities and failing to achieve holistic upliftment...", the plea adds.

Arguing that economic realities within SC, ST and OBC groups have significantly changed over time, the Supreme Court has been told that a small percentage of families within these communities have gained access to quality education, stable employment and economic mobility, thereby securing a generational advantage and in contrast, a vast majority within SC, ST and OBC groups continue to struggle with financial hardships and lack of access to essential resources such as quality education, healthcare and employment opportunities. 

It is submitted that the existing system, by failing to differentiate between the well-off and the economically deprived within these communities, has inadvertently perpetuated inequalities and hindered the true objectives of affirmative action. 

"The lack of an economic criteria within SC/ST reservations has enabled certain families to monopolise benefits over generations, while those in need struggle to break free from the cycle of poverty. Despite the implementation of reservations for over seven decades, many individuals from SC/ST backgrounds continue to face severe economic hardships. The persistence of poverty within these communities indicates that affirmative action in its current form is insufficient to facilitate socio economic upliftment without targeted economic interventions. A small but influential section of SC/ST families has successfully leveraged reservations to attain high-ranking government positions, financial stability and quality education. This has led to intra-community economic stratification, where the relatively affluent continue to benefit from reservations at the expense of those who remain in financial distress", the plea states.

Court has been told that a system similar to the ‘creamy layer’ concept in OBC reservations should be introduced for SC/ST reservations which would ensure that only the genuinely disadvantaged sections of these communities continue to receive state support. 

"A mechanism should be established to conduct annual assessments of the economic progress of families availing reservation benefits. This would ensure that individuals who have attained economic stability do not continue to benefit from reservations at the expense of those in greater need. By implementing periodic reviews, the system can be dynamically adjusted to reflect changing economic realities within SC/ST communities. A two-tier reservation system should be implemented within SC/ST categories, prioritising individuals from economically weaker sections before extending benefits to those who are relatively well-off", the petition adds.

In addition to restructuring the reservation framework, the petition submits that additional measures must be taken to support the most marginalised individuals within SC/ST communities. 

On the basis that the framers of the Constitution envisioned reservations as a temporary measure to uplift marginalised communities not as a permanent entitlement for select groups within these communities, the plea has said by incorporating an economic threshold within reservations, the policy would align with the broader constitutional mandate of creating an egalitarian society.

Case Title: Ramashankar Prajapati & Anr. vs. Union Of India & Ors.

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