EMD Forfeiture and Refund
Earnest money is returned to unsuccessful bidders as a matter of course. A surprising amount of it is never claimed.
When it comes back and when it does not
| Situation | EMD |
|---|---|
| You bid and lose | Returned after the tender concludes |
| You bid and win, and sign | Usually adjusted or returned once the performance guarantee is furnished |
| You win and then withdraw | Forfeited |
| You withdraw during bid validity | Forfeited |
| You submit false documents | Forfeited, plus action on your registration |
The forfeiture cases have a pattern: they all involve a bidder not honouring what the bid represented. That is what earnest money is for, and it is why "we changed our mind" is not a route out.
Written 5 September 2026. Government requirements and portal behaviour change — message us to confirm before you rely on any date or figure here.
The unclaimed refunds
Contractors who bid regularly accumulate EMD across tenders they did not win. Refunds are not always automatic, and a bidder who did not follow up on a tender they lost often never sees it back.
Across a few years and a few dozen bids, that adds up to real working capital sitting with departments.
Build a list: every tender bid, EMD amount, instrument, result, and whether it was returned. It takes an afternoon and it usually finds money.
If a refund has not come
Apply in writing with the tender reference and the instrument details, then follow up. Departments respond to written requests with a reference number far more reliably than to phone calls.
Where the instrument was a bank guarantee rather than cash, chase the discharge as well — an undischarged guarantee keeps your margin money tied up at the bank.
Common questions
Send us your case
Send us the tender references and instrument details. We will work out what is outstanding.
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The other places a bid gets won or lost.