Once again creamy layer is in controversy as far as reservation is concerned and if one takes into account the statutory stipulation of annual income criteria, the policy to exclude OBCs should have been revised from time to time and now there is a need to revisit the quota policy which has been plagued by lacuna and lack of political will to alter it. Quota or reservation whether it is on religious or income criteria always has been a bone of contention. It has not served much good for the society in general. The recent recommendation of steep hike in income by National Commission of Backward Classes to bar from Mandal reservation has been resented by the backward groups on the plea that it will create ‘creamy layer’, but since it is enforced by a Supreme Court judgement they would want it to be as liberal as possible. On the contrast in Jammu and Kashmir which is a Muslim majority State has reservation for majority community and the minorities are devoid of quota benefits. In Kashmir after the exodus of Kashmiri Pandits the total percentage of Muslim population is 97 per cent . The over two decades of militancy was attributed to the prevailing economic disparities and when it comes to reap in the benefits it was religion which was brought in the forefront as the main criteria. Such duality in the mindset of the policy planners further widened the ethnic, ideological gap. It also created economic disparities which were visible on the ground and militancy had nothing to do with such a school of thought. Despite being in majority and economically strong and enjoying the benefits of reservations still a section of the community remains backward and low in educational turnout with poor awareness. The quota system introduced to ameliorate the economic conditions of the target group even today lacks the objectives for which it was introduced.