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The Supreme Court in November, 1992 in its judgment in Indira Sahni & Others v/s Union of India had directed the Central Government as well as the State Governments to specify the basis for applying the relevant and requisite socio-economic criteria to exclude advanced persons/ sections, popularly known as Creamy Layer, from OBCs. Subsequently an expert Committee headed by Justice Ram Nandan Prasad was constituted by the Government. The recommendations made by the Committee for excluding the Creamy Layer amongst OBCs was accepted by the Government.

Accordingly, the Department of Personnel and Training on 8th September 1993 issued an order stipulating that the rule of exclusion will apply to son (s) and daughter (s) of persons holding Constitutional positions. These include the President, the Vice-President, Judges of Supreme Court and High Courts, Chairmen and Members of the Union and State Public Service Commissions, Chief Election Commissioner, Comptroller and Auditor General of India, parents either of whom is a Class I Officer, parents either or both of whom is or are in the rank of Colonel and above in the Army and equivalent posts in the Navy and Air Force and the para-military forces. Families owning irrigated land, which is equal to or more than 85% of the ceiling limit in terms of irrigated land as per State land ceiling laws and the persons having gross annual income of Rs.1.00 lakh or above or possessing wealth above the exemption limits prescribed in the wealth Tax Act for a period of three consecutive years (income for salaries or agricultural land shall not be clubbed) are also excluded.

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