New Delhi/IBNS: The Punjab and Haryana High Court Wednesday scrapped the controversial Haryana law mandating 75 percent reservation for state residents in private-sector jobs terming it unconstitutional.

The Haryana State Employment of Local Candidates Act, which underwent several changes after it was passed in 2020, provided 75 percent of private-sector jobs with a monthly salary or wages of less than Rs. 30,000 reserved for people with a resident or domicile certificate.

The domicile requirement had been brought down from 15 years to five.

With less than a year to go for the Assembly elections in Haryana, the decision is being seen as a big setback for the Manohar Lal Khattar-led government.

The state is likely to appeal against the judgment.

The Act, which was passed by the Haryana Assembly in November 2020 and received the governor's assent in March 2021, was seen as the brainchild of the Jannayak Janata Party, which is an ally of the BJP in the state, and whose leader, Dushyant Chautala, serves as the deputy chief minister.

Providing the reservation was one of the key promises made by Chautala ahead of the 2019 Assembly elections.