My DOJ id 6 Jan 2025 with DUSI but now I have got better offer with immediate project allocation joining within week by how should I reject the offer politely and for future whether I will be black listed or not?

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Just check your options. If you've decided to go with the other company then no worries, just let the DUSI HR know about your decision and it will be fine.
In case you're still weighing your options, do negotiate with the DUSI regarding your other company's offer. They might match it!

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