The Lok Sabha has passed a bill amending the Constitution to reinstate states' rights on the OBC list.
The bill received 385 votes in favour and no votes against it in the Lok Sabha.
The Constitutional Amendment Bill requires a two-thirds majority in both Houses of Parliament to pass.
Constitutional Amendment Bill: The Lok Sabha passed the Constitution (127th), Amendment Bill, on Tuesday, giving states the authority to create their own OBC lists.
The bill was passed by the Lok Sabha with 385 votes in favour and no votes against it.
The opposition parties have chosen to "cooperate" with the administration in passing the law, and their protests in the House have been suspended.
It was introduced by Virendra Kumar, the minister of social justice and empowerment, who described it as "historic legislation" that will help 671 castes across the country.
According to Kumar, the bill restores states' authority to compile their own lists of OBCs so that social and economic fairness may be provided to diverse communities.
After being renumbered, the minister stated that the bill should be regarded as the 105th Constitution Amendment bill.
In response to demands that reservations be increased above 50%, the minister stated that the administration understood the members' sentiments. He claims that the courts have frequently emphasised this constraint and that constitutional considerations must be taken into account.
The National Commission for Backward Classes was granted constitutional status by Parliament in August 2018.
Articles 338B, which deals with the structure, duties, and powers of the National Commission for Backward Classes, and 342A, which deals with the president's powers to notify a caste as an SEBC and Parliament's power to change the list, were inserted into the 102nd Constitution Amendment Act of 2018. SEBCs are defined under Article 366 (26C).
The Supreme Court has denied the Centre's request for a rehearing of its majority decision from May 5, which found that the 102nd Constitution amendment took away the states' ability to notify SEBCs of job and admission quotas.
The Centre has been accused by opposition parties of undermining the federal system by removing the states' ability to define and list the Other Backward Classes (OBCs).