Writ petition under Article 226 by successful bidders in an e-auction dated 06.10.2025 for Flat Nos. 187 and 324, Triveni Heights Apartment, Sector-16, Dwarka, Delhi (DDA 'Project'), who learnt only after bidding — through social media and news — of a blast (dated 05.10.2025) in the basement causing water accumulation, shattering of concrete, damage to pillars, upliftment of flooring and destruction of vehicles. They challenged DDA's circular dated 23.01.2026 recording a joint inspection and declaring the structure safe, which carried a coercive payment/forfeiture clause, and prayed for an independent third-party structural/geotechnical audit (IIT or similar), deferral of the payment schedule without interest/penalty/coercion, structural repairs with assurance of habitability, production of post-blast records by respondent no. 3, and interim stay of the circular. During arguments, petitioners confined their demand to refund of earnest money; DDA's standing counsel objected, insisting on forfeiture. Held: (i) the bidders were unaware of the blast when they participated in the e-auction, and their apprehensions were not unreasonable, as they were to pay about Rs. 2.1 crores and Rs. 2.3 crores — a person spending such substantial money must be mentally assured of the safety of the project; (ii) DDA, building a structure of this size and magnitude, had to take prior precautions including the possibility of rising water levels causing gas accumulation, and cannot excuse the incident as unprecedented rain; (iii) the blast occurred for reasons having an obvious deterrent effect, so withdrawal of the bid cannot be faulted and refund of earnest money is fair, reasonable and allowed, the forfeiture objection being unsustainable. Directed: refund of the deposited amount without interest within 2 weeks; thereafter DDA free to re-auction the flat without fetters or prior claims of the petitioners. Petition disposed of with pending applications. (Jasmeet Singh, J.)
