Earlier quoted context omitted.
That happens because there many Indian states have separate quotas in govt jobs/education for OBC (Other Backward Class)so a even if you are a Muslim and your caste is considered lower class, you can apply.
Are some castes designated as “Backward” ? The term implies facing the wrong way
You see, eons ago, caste in Indian society was not right, it was your job (warrior = Kshatriya, scholar = bramhin, trader = baniya, labourer = shudra).
The first three called themselves upper class and the last one was the lower class.
Among the first three, the first one think that they're upper than the other two. The second one thinks that they're upper than the third.
But this was never hereditary. if you were born to a Bramhin (basically any person who had the brains to be a scholar) and if you didn't have the knack of being a 'scholar' you could become a warrior if you had the skills, or a trader, if you had those skills. If you had no such skills then you were the labourer.
But what happened is, centuries after this tradition started, it was made hereditary. So only sons of Bramhins can be scholars, only sons of Kshatriyas can be warriors, only sons of Baniyas can be traders and all Shudras were forever shudras.
The architect scholar and almost superman historical Dr Ambedkar was a Mahar aka Dalit aka Shudra. This guy graduated at the top of LSE, has written extensively on India and almost all of his writings were 100% spot on (his thoughts about why it was good that Pakistan formed for Indian Army's balance or what'll happen when Hindu nationalism will rise etc)
But he was treated as shit just because he was born a Mahar.
Now the tragical thing is that Mahars were warriors in Shivaji Maharaj's time (he was a Deccan King who was kinda democratic and not cruel like Mughals. Even actual Gods are below him in my state, people, including atheists like me worship him, not in temples obviously. It is like you can insult Gods and it'd be fine but if you insult him then you are done)
During his reign, Mahars were fierce warriors and had their own regiment in his army. But his descendents weren't exactly great and in the 3rd generation king's army, only 'higher caste' khastriyas could be warriors and others were treated as literally shit. there has been documented evidence (thank God for the documentation) that at the end of the Peshwa rule, the lower class people had to attach a broom at their backside so that they'd sweep the land they walked on because they were considered 'filthy' (not physically). No lower class man or woman or child was allowed in upper class wells, temples. they were not allowed to have horses in their weddings etc. Some of these practices are still rampant in India where upper caste privileged people are blind. you can see quite a few in this thread who are either blind or racist.
basically this was just like slavery without higher caste people owning the lower caste people.