Income ceiling introduced for backward class reservation
· Chennai
The MGR government introduced an annual income ceiling to exclude better-off families from backward class reservation.
In July 1979 the AIADMK government of M. G. Ramachandran introduced an economic criterion for reservation, excluding backward class families above an annual income limit of Rs 9,000. The move followed recommendations associated with the Sattanathan Commission on a creamy layer. The order was strongly opposed by the Dravidar Kazhagam and the DMK, who argued that reservation should rest on social and educational backwardness. The issue became a major point of contention in Tamil Nadu politics in the run-up to the 1980 elections.