A bench of justices S Ravindra Bhat and R V Easwar said if the government can't keep the juveniles secure, then it amounts to "admitting defeat".
The court directed that officers of Directorate General Resettlement (DGR) be deployed at the observation homes within 3 days to replace the private security personnel currently used.
The bench gave the direction as the government had earlier told the court that it is considering replacing the private security personnel at these observation homes with officers from DGR.
Delhi government was also directed to submit by March 6 a comprehensive report on the problems in observation homes.
The court was hearing a suo motu case initiated by it last year over the incidents of juveniles escaping from the probation homes as well as other problems occurring at these premises.
Yesterday, over 40 inmates of an observation home here had escaped after an altercation.