Explanation:

Under clause (4) Article 16 reservation could exceed to any extent if government thinks it proper.

The Supreme Court referred to Article 16 and its clauses 4 and 4A while delivering its judgement in the matter. Article 16 in the Constitution of India refers to equality of opportunity in government jobs.

• Article 16 (4) states: "Nothing in this article shall prevent the State from making any provision for the reservation of appointments or posts in favour of any backward class of citizens which, in the opinion of the State, is not adequately represented in the services under the State."
• Article 16 (4A), which was introduced in 1995, states: "Nothing in this article shall prevent the State from making any provision for reservation in matters of promotion to any class or classes of posts in the services under the State in favour of the Scheduled Castes and the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the State."
• To summarise, the Constitution of India grants state government the power to reserve vacancies for backward sections, and even grant reservation in matters of promotion for posts under it. This can be done if the state believes that the reserved categories are inadequately represented in public services under it.

Hence option 2nd is correct.