Mumbai: The Supreme Court has stayed the central law providing for 27-per cent reservation for other backward classes (OBCs) in elite educational institutions, including IITs and IIMs.

The court held that the 1931 census could not be a determinative factor for identifying the OBCs for the purpose of providing reservation and the 27 per cent reservation for OBCs in the country's top educational institutions based on the census data won't hold good under the changed circumstances.

"...It is desirable to put on hold the OBCs reservation," a bench comprising Justice Arijit Pasayat and Justice L S Panta observed.

The bench, however, clarified that the benefit of reservation for the scheduled castes and scheduled tribes could not be withheld.

The government, meanwhile, could go ahead with the identification process to determine the backward classes, the court said.

The bench was delivering the verdict on bunch of petitions challenging the government notification to implement the controversial `Central Educational Institution (Reservation in Admission) Act, 2006' providing 27 per cent reservation to the OBCs in elite institutions.

Observing that the data for providing reservation to the OBCs was irrelevant, the court said; "What may have been the data in 1931 census cannot be a determinative factor now."

The state was empowered to enact an affirmative Act to help the backward classes but this action could not be unduly adverse to those who were left out, the court observed.

"Reservation cannot be permanent and appear to perpetuate backwardness," the bench said.

The Supreme Court's decision comes as a major setback to the pro-reservationists in the government.