Delhi High Court Upholds Termination of FCI Employee Over Invalid OBC Certificate

Court Upholds Termination, Declares Appointment Void Ab Initio

In a significant ruling on reservation policies for central government jobs, the Delhi High Court has dismissed a writ petition filed by Rohit Khatri against the Food Corporation of India (FCI), upholding the termination of his services. The court ruled that an OBC certificate based on a state list is invalid for claiming reservation in central government posts, rendering the petitioner's appointment void from the outset. The decision, in W.P.(C) 12325/2018 & CM APPL. 47787/2018, emphasizes that only communities listed in the Central Government's OBC list qualify for such reservations, with no scope for estoppel based on length of service.

Case Background and Timeline

Rohit Khatri was appointed as Assistant Grade III (Accounts) in the FCI in 2011 under the OBC category, following a recruitment advertisement issued on July 31, 2010. He submitted an OBC certificate issued under the Delhi state list, which was initially verified by the Tehsildar in 2012. Confirmed after probation in 2012, Khatri served for over six years before facing scrutiny.

In 2014, FCI issued a show-cause notice questioning the certificate's validity, as Khatri's community (Jaat) was not on the Central List of OBCs. Despite responses from Khatri, his services were terminated on March 21, 2018. Subsequent appeals and reviews were dismissed on July 11, 2018, and November 5, 2018, respectively, leading to the present writ petition seeking quashing of these orders.

Arguments from Both Sides

Khatri's counsel argued that the 2010 advertisement did not explicitly require the Central List for OBC eligibility, and the termination was stigmatic after six years of service without fault on his part. They highlighted FCI's verification of the certificate, vigilance clearances issued in 2013 and 2015 for transfer and promotion, and urged invocation of estoppel principles. Reliance was placed on Regulation 7 of the Food Corporation of India (Staff) Regulations, 1971, for relaxing eligibility conditions, citing precedents like Iqbal Khatri v. Employees State Insurance Corp. (SLP(C) No. 28269/2011) and Union of India v. Jagdeep (2025 SCC OnLine Del 13681) to argue for reinstatement despite certificate invalidation.

FCI countered that the appointment was void ab initio due to ineligibility under the Central List, distinguishing between state and central OBC lists. They asserted no equity arises from prolonged service, vigilance clearances only confirmed no ongoing inquiries (not termination proceedings), and Regulation 7 does not permit altering reserved post categories. The respondent relied on Pankaj v. Union of India ((2005) ILR 2 Delhi 341) to argue that state-list OBC status does not qualify for central posts, vitiating the appointment.

Legal Precedents and Principles Applied

The court drew on established precedents to affirm that only the Central List applies for OBC reservations in central government jobs. In Pankaj v. Union of India , a Division Bench held: "Appointments to reserved posts for OBCs in the Central Government can only be given to candidates belonging to communities mentioned in the Central List (Mandal List). Candidates belonging to communities included in State Government lists are not eligible." The judgment distinguished this from cases like Sanatan Gauda v. Berhampur University , noting no estoppel against law for illegal appointments.

Further, citing Bank of India v. Avinash D. Mandivikar ((2005) 7 SCC 690), the court reiterated that invalidation of a reservation certificate collapses the appointment's foundation, rejecting equity claims based on service length: "The very foundation of his appointment collapses and his appointment is no appointment in the eyes of law." The ruling clarified that petitioner-specific precedents like Iqbal Khatri were fact-bound and not applicable, especially as they overlooked Pankaj .

Key excerpts underscore the reasoning: "The petitioner was well aware that the OBC list of Central Government would be applicable... evident from the declaration filed by the petitioner." On estoppel: "A wrong appointment without proper verification cannot give any right to the petitioner who is a non-OBC to occupy a post reserved for an OBC category... Principle of estoppel is therefore not applicable."

Court's Decision and Implications

The Delhi High Court dismissed the writ petition, upholding the termination orders and disposing of pending applications. It ruled the appointment illegal due to ineligibility, with no stigma attached as termination stemmed from objective ineligibility, not misconduct. Regulation 7 was interpreted narrowly, allowing only age or qualification relaxations, not changes to reservation nature.

This decision reinforces strict adherence to central OBC lists for public sector reservations, potentially impacting similar cases where state certificates are used erroneously. It serves as a caution to candidates and employers on verification, prioritizing legal eligibility over service tenure to protect reserved quotas for genuine beneficiaries.