The Supreme Court has dismissed Telangana’s plea challenging the 42% OBC reservation hike in municipalities and panchayats. The High Court’s interim stay remains, allowing local elections to proceed without implementing the proposed quota increase.
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NEW DELHI: The Supreme Court on Thursday dismissed the Telangana State Government’s plea challenging the Telangana High Court’s interim order that stayed the State’s decision to increase Other Backward Classes (OBC) reservation in municipalities and panchayats to 42%. The case was heard by a Bench comprising Justices Vikram Nath and Sandeep Mehta.
The Telangana government had issued three government orders (GOs) on September 26, 2025, which included a 42% reservation for OBCs in local bodies. The orders also provided guidelines for implementing the quota in Mandal Praja Parishads, Zilla Praja Parishads, and Gram Panchayats under the Telangana Panchayat Raj Act, 2018. These GOs were challenged in multiple petitions before the Telangana High Court.
High Court Stay on OBC Reservation Hike
On October 9, a Division Bench of the Telangana High Court, comprising Chief Justice Aparesh Kumar Singh and Justice GM Mohiuddin, stayed the reservation hike, noting that it appeared to violate the 50% cap on reservations set by the Supreme Court in previous case laws. The High Court clarified that local body elections could continue without implementing the proposed increase in OBC reservations.
Supreme Court Hearing
During Thursday’s hearing, Senior Advocate Abhishek Manu Singhvi, representing Telangana, argued that the High Court’s interim order was issued without sufficient reasoning. Singhvi said:
“This is a government policy decision, supported by a unanimous resolution of all parties. How can it be stayed without proper pleadings? Except for the initial few pages, the stay order does not provide any reasons.”
Singhvi further challenged the notion of a rigid 50% cap, highlighting the state’s unique demographics:
“My Lords, if a strict 50% cap on reservations is imposed, what happens in states where the OBC population exceeds 70%? I request that Your Lordships consider the broader question of whether the 50% ceiling can be exceeded; otherwise, a rigid 50% rule would apply uniformly across the country.”
Opposition Argument
Senior Advocate Gopal Sankaranarayanan, representing one of the petitioners before the High Court, argued that the proposed increase breached the Supreme Court’s established limits:
“Putting procedure aside, even if we accept everything Dr. Singhvi said, the government order increasing OBC reservation to 42% takes total reservations well beyond 60%. The Krishnamurthi Constitution Bench interpreted these provisions clearly: there is a 50% ceiling, with no room beyond it.”
He added:
“While Indra Sawhney allows breaching 50% for socially and educationally backward classes, that exception does not apply here.”
Supreme Court Decision
The Supreme Court declined to interfere with the High Court’s stay order. The Bench stated:
“You may continue with your elections… (State’s appeal) dismissed. The order shall not affect the High Court in deciding the case on its own merits.”
This decision ensures that the local elections in Telangana can proceed without implementing the proposed OBC quota hike, while the High Court will continue to hear the matter on its merits.
The Telangana High Court is expected to take up the matter next in December 2025.
Case Title:
THE STATE OF TELANGANA AND ORS. V BUTTEMGARI MADHAVA REDDY AND ORS.
SLP(C) No. 29820-29836/2025