EKI Energy Services543284Regulatory penalty

To appeal SEBI's October 30 order before SAT; expense finding narrowed to Rs 26.34 crore from Rs 48 crore

Company says it will challenge SEBI's October 30, 2026 order before the Securities Appellate Tribunal.

By ScoutQuest · Tue 3 Nov 2026, 12:47 PM IST · 3 min read

73.4%Promoter holding, lower end of stated range

Promoter holding, lower end of stated range: 73.4%.

Final order expense finding: ₹26.34 crore
Show cause notice alleged overstated expenses: ₹48 crore
Promoter holding (no promoter selling): about 73.4% to 73.5%

What the company has disclosed

The company has issued a press release on the order dated October 30, 2026 passed by SEBI. It says it does not concur with certain assertions and actions taken by the authority and is evaluating appropriate legal remedies, including an appeal before the Securities Appellate Tribunal under Section 15T of the SEBI Act, 1992. It adds that it holds SEBI and its processes in high regard and that an appeal before the Tribunal is part of the same legal process.

The expense finding

The show cause notice had alleged overstated expenses of ₹48 crore.
The final order limits that finding to ₹26.34 crore and accepts the balance as genuine.
For this amount, the order states that the company did not establish that the documents placed before the Ministry of Corporate Affairs, the Income Tax Department and independent experts were the same as those before SEBI. The company says it will place that evidence before the Tribunal.
The company says the order itself records no quantifiable gain from the alleged defaults, no quantifiable loss to investors and no repeat default.

On the fraud provisions

The Ministry of Corporate Affairs had considered the inspection report under Section 206(5) of the Companies Act, 2013. By its letter of April 2, 2026, MCA decided that no penal action be taken under Sections 447 and 448, the provisions that deal with fraud.

The revenue recognition point

The order concerns the stage at which revenue from certain carbon credit project contracts should be recognised under Ind AS 115 during the first three quarters of FY 2022-23.
The company describes this as a difference in professional judgement between its management and its then statutory auditor on a novel line of business.
It says it adopted the more conservative view and revised the figures before the year's accounts were finalised, and that its audited financial statements for FY 2022-23 carry the revised numbers, with the revisions disclosed to the stock exchanges at the time.
The order treats the revision as a mitigating factor and notes that management's position reflected application of mind to the accounting question.
The company adds that the underlying contract amounts were received and income tax along with GST were paid in time.

Promoter holding and the direction on the Managing Director

The company says no promoter or promoter group entity sold shares during the period under review, and that promoter holding remained steady at about 73.4% to 73.5%. It says the order makes no finding that any funds reached the Managing Director, the promoters or their relatives, and that it will raise the order's direction to the Managing Director to recover the amount before the Tribunal.

Business impact

The company says the order places no restriction on its business. Its carbon project development, carbon credit transactions, clean cooking programmes and advisory work for clients in India and overseas are stated to continue without interruption.

Management comment

Managing Director Manish Kumar Dabkara said the approach through these proceedings has been to put every document on the table, and that the same will be done before the Tribunal, adding that the teams remain focused on delivering for clients and the households the projects reach.

What a retail investor can read from this

A regulatory order carrying a monetary finding of ₹26.34 crore is a live matter that the company is contesting.
The company's own reading is that the final order is narrower than the show cause notice on the expense amount, and that it records no quantifiable investor loss.
Promoter holding is stated at about 73.4% to 73.5%, with no promoter selling during the period under review.
The company's business, as described by it, is not restricted by the order and continues as before.

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