Indore : EKI Energy Services Limited (BSE 543284 : NSE EKI) said on Tuesday it is preparing to challenge the Securities and Exchange Board of India’s order of October 30, 2026 before the Securities Appellate Tribunal. The company pointed out that the order itself records no quantifiable gain from the alleged defaults, no quantifiable loss to investors and no repeat default.
The company said it holds SEBI and its processes in high regard and that an appeal before the Tribunal is part of the same legal process. As the order records, EKI’s representatives inspected the documents relied upon, filed detailed written replies and appeared at the personal hearings.
According to the company, the show cause notice had alleged overstated expenses of ₹48 crore. After examining EKI’s documents, the final order limits its finding to ₹26.34 crore and accepts the balance as genuine. For this amount, the order states that EKI did not establish that the documents it placed before the Ministry of Corporate Affairs, the Income Tax Department and independent experts were the same as those before SEBI. The company said it will place that evidence before the Tribunal.
The Ministry of Corporate Affairs (MCA) had considered the inspection report under Section 206(5) of the Companies Act, 2013. MCA, by its letter of April 2, 2026, decided that no penal action be taken under Sections 447 and 448, the provisions that deal with fraud.
On revenue, 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. EKI said this was a difference in professional judgment between its management and its then statutory auditor on a novel line of business. The company said it adopted the more conservative view and revised the figures before the year’s accounts were finalised, and its audited financial statements for FY 2022-23 carry the revised numbers. The revisions were 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 added that the underlying contract amounts were received & income tax along with GST were paid in time.
EKI said no promoter or promoter group entity sold shares during the period under review, and promoter holding remained steady at about 73.4 to 73.5%. According to the company, the order makes no finding that any funds reached the Managing Director, the promoters or their relatives. The company said it will raise the order’s direction to the Managing Director to recover the amount before the Tribunal.
The order places no restriction on EKI’s business. Its carbon project development, carbon credit transactions, clean cooking programmes and advisory work for clients in India and overseas continue without interruption.
“Our approach through these proceedings has been to put every document on the table, and we will do the same before the Tribunal. I am confident the full record will support our position. Our teams remain focused on delivering for our clients and the households our projects reach, and our shareholders will hear from us at every step,” said Manish Kumar Dabkara, Managing Director, EKI Energy Services Limited.
****