D.D.A. vs GRIHSTHAPANA COOP. G.H.S. LTD.

The Supreme Court held that the Delhi High Court's direction to refund earnest money to respondents was unjustified, as the respondents accepted the allotment under conditions that included potential price enhancement. The Court emphasized that earnest money can be forfeited if the contract does not proceed, supported by the Delhi Development Authority (Disposal) of Developed Nazul Land Amendment Rules, 1981, which allows forfeiture for non-payment of premium. The Court upheld the appellant's action of forfeiting the earnest money, affirming the legality of the enhancement of land cost under Section 24(2) of the Rules.