Context: 

The Telangana Government has initiated the process to increase reservations for Backward Classes (BC) to 42% in educational institutions, public employment, and elections to rural and urban local bodies.

More on the News

The State Assembly passed two key Bills: 

• The Telangana Backward Classes, Scheduled Castes and Scheduled Tribes (reservation of seats in educational institutions and appointments or posts in services under the State) Bill 2025.
• The Telangana Backward Classes (Reservation of seats in Rural and Urban Local Bodies) Bill 2025.

This move follows the withdrawal of a previous Bill passed by the Telangana Rashtra Samithi (BRS) government in 2017, which sought to increase BC reservations from 29% to 37% and ST reservations from 6% to 10%, which was awaiting the assent of the President of India had been withdrawn.

About the Bills

Once the Central Government approves these Bills, the reservation distribution will be: 

• Backward Castes: 42%
• Scheduled Castes (SCs): 15%
• Scheduled Tribes (STs): 10%

These enhancements in reservation are expected to cover educational institutions, public services, and local body elections.

The Backward Classes Welfare Minister of Telangana emphasised that inclusive development of marginalized communities was a core issue during the formation of Telangana State.

The decision to enhance BC reservations came after multiple demands from BC associations, political parties, and individuals highlighting the backwardness and underrepresentation of BCs.

Socio-Economic Survey and Commission Formation

• In response to the Supreme Court’s directive requiring quantifiable data for exceeding the 50% reservation limit, the Telangana government conducted a Socio-Economic, Education, Employment, Political, and Caste Census.
• A dedicated commission was set up under former bureaucrat Busani Venkateshwara Rao to carry out an empirical inquiry into the backwardness of BC communities in local bodies and other sectors.
• The commission’s task was to assess the proportion of reservations based on social, educational, and economic backwardness, as well as inadequacy in political representation.
• It recommended at least 42% reservation for BCs in education, employment, and political representation, especially in local bodies.
• The State Council of Ministers approved the recommendation to enhance BC reservations to 42%, citing the need for fair representation and inclusion.

Similar Cases

Bihar’s 65% reservation quota: The Supreme Court in 2024 refused to stay the Patna High Court’s decision to declare the Bihar government’s 65% reservation (based on caste survey census of 2023) in educational and public employment as unconstitutional. 

• Those challenging the 65% quota had argued that it breached the 50% limit on reservations imposed by the 1992 judgment in Indra Sawhney v Union of India (1992).

Indira Shawney Case

The Indra Sawhney vs. Union of India case, also known as the Mandal verdict, is a landmark Supreme Court decision from 1992 that addressed reservations for Other Backward Classes (OBCs) in government jobs and education, upholding the 27% reservation but with conditions. 

The court introduced the concept of the "creamy layer" to exclude the more affluent members of OBC communities from reservation benefits.

• Creamy layer refers to a group of people within a certain caste/community who are better off than the rest based on certain criteria.

Additionally, the court also reiterated the 50% limit to vertical quotas it had set out in earlier judgments in 1963 (M R Balaji v State of Mysore) and in 1964 (Devadasan v Union of India), reasoning that it was needed to ensure “efficiency” in administration. 

The court said this 50% limit will apply, unless in “exceptional circumstances”.

The court ruled that reservations could not be applied in promotions, meaning they only apply at the initial hiring stage.

The court emphasized that the criteria for a reservation should be based on "social and educational backwardness". 

Has the 50% Ceiling Ever Been Breached?

Tamil Nadu's Exception: In 1990, Tamil Nadu raised its reservation quota to 69%. This move was upheld by the Supreme Court after the law was placed under the Ninth Schedule of the Constitution in 1993.

• The Ninth Schedule of the Constitution of India allows the legislature to exempt certain laws from judicial review (under Article 31A of the Constitution) through constitutional amendments.
• Laws placed in the Ninth Schedule cannot be challenged for reasons of violating any fundamental right protected under the Constitution.