INDIA BUSINESS WORLD - JULY - AUGUST - 2007
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SUPREME COURT REFUSES TO VACATE STAY ON IMPLEMENTATION OF OBC QUOTA

THERE will be no OBC quota this year. In a major setback to the Centre, the Supreme Court has refused to vacate the stay on the implementation of the 27% quota for other backward classes (OBC) in central education institutions like IITs and IIMs.

The five-judge Constitution bench headed by Chief Justice K G Balakrishnan refused to entertain the Centre's application for a vacation of the stay order on the ground of changed circumstances. This effectively put an end to the Centre's effort to ensure reservation for OBC students in central education institutes in the current academic session.

"The interim order will continue. We are not going to pass any order," the bench said. Besides the chief justice, the Constitution Bench comprises Justice Arijit Pasayat, Justice C K Thakker, Justice R V Raveendran and Justice Dalveer Bhandari. On March 29, the court, in its interim order, had stayed the Central Educational Institutions (Reservation in Admission) Act, 2006, providing 27% reservation for OBCs in premier central educational institutions commencing from the present academic session.

Reacting to the apex court's decision, Mr. Arjun Singh said, "The ministry is trying to do what is correct. The delay was not on our part. At every stage we were eager to get the matter resolved. Now we will see what can be done." The HRD minister was clear that the decision was not a setback and that the court had not rejected the idea of reservation for OBC students. Responding to the possibility of a fresh plea for early resolution of the matter, Mr. Singh said: "Why should we anticipate that it will take that long? I am quite sure there may be a judgement."

Despite the judicial debacle, Singh, once again, displayed his itch for a confrontation by claiming that he was ready with the Bill which would apply to private deemed to be universities. The proposed legislation is yet to be cleared by the Cabinet, though a group of ministers finalised the legislation after undertaking a series of consultations with the various stakeholders, including state governments, political parties and private deemed to be universities. Though the apex court's refusal to lift the stay has effectively delayed action on this front, Mr. Singh said, "I think it will require little time for us to think over."

Mr. Singh also denied that the government had decided to revise its stand on the creamy layer issue. "As far as we are concerned, the creamy layer was not an issue to be discussed and decided upon because that was not part of our Bill. We have been saying it was part of the scheme." Clarifying the situation, the HRD minister said that the solicitor-general had only said that he has no brief on the issue.

Earlier in the day, the chief justice speaking on behalf of the bench said that vacating the stay was not possible as implementing the contemplated increase in seats was not possible for all the intended institutions. "We have considered the materials placed by you, and as regards the medical and engineering colleges, we cannot allow increase of seats," bench said.

The court cited the examples of those institutions where the quota for OBCs was not possible for the current academic session. "In medical, engineering and dental colleges, it is not possible now. Some may get benefits, some will not," said the bench. The court said the statute was intended to benefit all institutions and it cannot allow only a few to benefit.

The anti-quota petitioners had opposed the Centre's stand that the seats in some institutions have been increased and it would not affect the General category if the 27 % quota was extended to the OBCs. They had alleged that the Centre had increased the seats in some engineering and medical colleges without taking the approval of the appropriate authority like the Medical Council of India and All India Council for Technical Education.

The court, declining to lift the stay said that it will hear the main petitions challenging the validity of the act which provides 27% reservation to the OBC in elite educational institutions.