Telangana High Court stays State's move to increase OBC reservation in local bodies to 42%

The Telangana High Court on Thursday stayed the State government’s decision to raise Other Backward Classes (OBC) reservation in municipalities and panchayats to 42 per cent [Buttemgari Madhava Reddy and anr v. State of Telangana and ors and connected matters].

The move made ahead of elections to such local bodies effectively took total reservations to 67 per cent.

A Bench of Chief Justice Aparesh Kumar Singh and Justice GM Mohiuddin passed the interim order on a batch of petitions challenging three government orders (GOs) passed by the State on September 26 this year.

One of the GOs ordered the provision of 42 per cent reservation to OBC individuals in local bodies. Two other consequential GOs laid down guidelines for the fixation of such reservations in respect of elections to Mandal Praja Parishads, Zilla Praja Parishads and Gram Panchayats under the Telangana Panchayat Raj Act, 2018.

The High Court opined that such an increase in the OBC quota appeared to violate the 50 per cent limit set for such reservation by the Supreme Court in various case laws.

The Court recounted that the Supreme Court has laid down a triple test that must be complied with before reserving seats in the local bodies for OBC candidates.

This test involves the following:

(1) A dedicated commission should be set up to conduct an empirical study into the nature and implications of the backwardness with respect to local bodies within the State;

(2) The proportion of reservations should be specified, based on the recommendation of the commission;

(3) Such reservation shall not exceed 50 per cent of the total seats reserved for Scheduled Castes, Scheduled Tribes, and OBC candidates taken together.

The High Court took a prima facie view that the Telangana government's GOs providing an additional 42 per cent reservation to OBC candidates did not appear to satisfy this triple test.

It, therefore, stayed the GOs which provided for such reservation until a final decision is taken by the High Court on the validity of the same.

"We are of the prima facie view that the respondents/State have failed to adhere to the criteria of 50% upper ceiling as laid down by the Hon’ble Supreme Court in Vikas Kishanrao Gawali (supra) by issuance of G.O.Ms.Nos.9, dated 26.09.2025, whereby 42% reservation has been provided to the OBCs in the local bodies, thereby breaching the ceiling of 50% to a total of 67% reservation in local bodies...The G.O.Ms.No.9, dated 26.09.2025, which increased the percentage of reservation to OBCs to 42% and the consequential G.O.Ms.Nos.41 and 42, dated 26.09.2025, are being stayed, till the matter is finally decided," the Court ordered.

The Court also clarified that it has not issued any stay on the local body elections notified recently, which are scheduled to be held in five phases from October 9 to November 11.

"(For the upcoming local body elections) the State Election Commission would notify the proportionate seats as open category seats and proceed with the elections of the local bodies," it added.

The matter will be heard next on December 3.

Earlier, one Vanga Gopal Reddy had approached the Supreme Court to challenge the State government's hiked OBC quota. However, a Division Bench of the top court on October 6 declined to entertain the plea, opining that the matter should first be heard by the High Court.

Before the High Court, the counsel who appeared for various petitioners included Senior Advocates Vivek Reddy, B Mayur Reddy and J Prabhakar, along with Advocates K Buchi Babu, Anjali Nishtal, Kamatam Rajitha, Baskula Athik, K Ram Reddy, G Arun Kumar, Sudarshan Malugari, Purnima Kamble, Altaf Fathima and Mohammed Abdul Wahab.

The State was represented by Senior Advocates AM Singhvi and Ravivarma Kumar, Advocate General A Sudershan Reddy assisted by Government Pleader IV Siddivardhana.

Senior Advocate G Vidya Sagar and standing counsel P Sudheer Reddy appeared for the State Election Commission.

[Read Order]