Context: Recently, the Lok Sabha passed the Constitution 127th Amendment Bill, 2021 restoring States’ rights to specify OBC groups.
About

• According to the Constitution of India, Articles 15(4), 15(5) and 16(4) confer power on a state to identify and declare the list of socially and educationally backward classes. 
• As a matter of practice, separate OBC lists are drawn up by the Centre and each state concerned.
• The 127th Constitution Amendment Bill will amend clauses 1 and 2 of Article 342A and also introduce a new clause 3. The Bill will also amend Articles 366 (26c) and 338B (9).
• The 127th Amendment Bill is designed to clarify that the states can maintain the "state list" of OBCs as was the system prior to the Supreme Court judgment. Articles 366 (26c) defines socially and educationally backward classes.
• The "state list" will be completely taken out of the ambit of the president and will be notified by the state Assembly as per the proposed Bill.

Need of 127th Constitution Amendment Bill 

• The amendment was thought necessary because the SC in its order on Maratha reservations upheld the 102ndConstitutional Amendment Act that inserted Articles 338B and 342 A (with two clauses) after Article 342.
• Earlier it was said that the President of India, in consultation with Governors, would specify socially and economically backward classes, taking away the powers of state governments to do so.

Main Provisions of the Bill
List of socially and educationally backward classes

• The National Commission for Backward Classes (NCBC) was established under the National Commission for Backward Classes Act, 1993.  
• The Constitution (One Hundred and Second Amendment) Act, 2018 gave constitutional status to the NCBC, and empowered the President to notify the list of socially and educationally backward classes for any state or union territory for all purposes.  
• The 2021 Bill amends this to provide that the President may notify the list of socially and educationally backward classes only for purposes of the central government.  This central list will be prepared and maintained by the central government.  
• Further, the Bill enables states and union territories to prepare their own list of socially and educationally backward classes.   This list must be made by law, and may differ from the central list.

Consultation with the NCBC

• Article 338B of the Constitution mandates the central and state governments to consult the NCBC on all major policy matters affecting the socially and educationally backward classes.  
• The Bill exempts states and union territories from this requirement for matters related to preparation of their list of socially and educationally backward classes.

Significance

• The current Constitutional Amendment Bill is a historic legislation as 671 castes in the country would benefit from it. Therefore, benefitting nearly one-fifth of the total OBC communities.
• It will restore the States’ rights to maintain a state list of OBCs which was taken away by a Supreme Court interpretation.
• It will allow states to respond quickly to socio-economic requirements which are specific to a state or region.

Road Ahead

• India has a federal structure and the passed Bill will further enhance the federal structure of the country. This amendment was essential to benefit society at large. 

National Commission for Backward Classes (NCBC)

• It is made under 102nd Constitutional Amendment Act, 2018.
• It had inserted Articles 338B and Article 342A (with two clauses) after Article 342. 
• Articles 338B deals with the structure, duties and powers of the National Commission for Backward Classes. 
• Article 342A says that the president, in consultation with the governor, would specify the socially and educationally backward classes.

Constitutional status to National Commission for Backward Classes

• The NCBC is a body set up under the National Commission for Backward Classes Act, 1993.  
• It has the power to examine complaints regarding inclusion or exclusion of groups within the list of backward classes, and advise the central government in this regard. 
• The Bill seeks to establish the NCBC under the Constitution, and provide it the authority to examine complaints and welfare measures regarding socially and educationally backward classes.

Role of NCBC:  Look into complaints and welfare measures with regard to backward classes. 

Backward classes

• The President may specify the socially and educationally backward classes in the various states and union territories. 
• He may do this in consultation with the Governor of the concerned state.  
• However, a law of Parliament will be required if the list of backward classes is to be amended.

Composition and service conditions

• The NCBC will comprise five members appointed by the President.  
• Their tenure and conditions of service will also be decided by the President through rules.

Functions

• investigating and monitoring how safeguards provided to the backward classes under the Constitution and other laws are being implemented, 
• inquiring into specific complaints regarding violation of rights, and 
• advising and making recommendations on socio-economic development of such classes.  
• The central and state governments will be required to consult with the NCBC on all major policy matters affecting the socially and educationally backward classes.

Annual Reports

• The NCBC will be required to present annual reports to the President on working of the safeguards for backward classes.  
• These reports will be tabled in Parliament, and in the state legislative assemblies of the concerned states.

Powers of a civil court

• The NCBC will have the powers of a civil court while investigating or inquiring into any complaints. 

These powers include

• summoning people and examining them on oath, 
• requiring production of any document or public record, and 
• receiving evidence.