SEBI Debars EKI Energy Founder Manish Dabkara for One Year and Imposes Rs 88 Lakh Penalty Over Accounting Irregularities
Capital markets regulator Securities and Exchange Board of India (SEBI) has barred climate solutions and carbon credit specialist EKI Energy Services Ltd, along with its founder and managing director Manish Kumar Dabkara and three other officials, from accessing the securities market. The regulator has also imposed penalties totalling Rs 88 lakh on eight noticees.
The ruling, issued on October 30, 2026, by SEBI Quasi-Judicial Authority N. Murugan, follows an investigation into the company's financial statements that revealed extensive revenue misstatements and improper expense booking.
Key Debarments and Penalties
Under the enforcement order, SEBI prohibited the company and its management personnel from buying, selling, or dealing in the capital markets for varying durations.
Debarment periods handed down by SEBI:
- Manish Kumar Dabkara (Chairman and Managing Director): Debarred from the securities market for 12 months.
- Mohit Kumar Agarwal (Chief Financial Officer): Debarred for eight months.
- Naveen Sharma (Whole Time Director): Debarred for five months.
- EKI Energy Services Ltd: Debarred from the securities market for two months.
- Sonali Sheikh (Whole Time Director and former CFO): Debarred for one month.
In addition to the suspensions, SEBI penalised eight entities an aggregate sum of Rs 88 lakh. Compliance Officer Itisha Sahu and independent directors Ritesh Gupta and Burhanuddin Ali Husain Maksi Wala were penalised financially but were not barred from market access.
Findings on Revenue Misrepresentation and Fund Diversion
SEBI's investigation established that EKI Energy prematurely recognised revenue of Rs 197.04 crore across the first three quarters of FY 2022-23 (June, September, and December 2022 quarters). The regulator characterised the practice as reckless financial misrepresentation that misled public investors making decisions regarding the company's listed equity.
Furthermore, the watchdog discovered that EKI had booked Rs 26.34 crore in fictitious expenses across FY 2021-22 and FY 2022-23. The order treated these non-genuine expenditures as an unlawful diversion of company funds and directed Dabkara to take immediate steps to recoup the diverted sums on behalf of the company.
Corporate Turmoil and Market Impact
EKI Energy Services had been one of the Indian market's most dramatic multi-bagger stories following its April 2021 listing on the BSE SME platform. Priced at Rs 140 per share at its initial public offering, the stock skyrocketed to over Rs 3,100 in early 2022 amid a global surge in carbon credit trading.
However, the company's trajectory reversed sharply when its former statutory auditor, Walker Chandiok & Co, raised serious qualifications regarding revenue recognition on engineering, procurement, and construction (EPC) contracts tied to energy-efficient cookstoves. Disagreements over financial accounting led to significant delays in financial results and the eventual removal of the auditor, precipitating a steep decline in share value.
The order does not prevent ordinary retail and institutional shareholders from holding or trading existing shares of EKI Energy Services. However, it signals a resolute warning from SEBI regarding financial disclosures, highlighting that inflated books and improper revenue accounting will face strict disciplinary action under securities law. The noticees maintain the statutory right to challenge the order before the Securities Appellate Tribunal (SAT).
