SEBI finds ₹26 crore diverted from EKI Energy

Markets No. 113 2 November 2026 · 2 min read · By Pranami Hayaran

SEBI's order of 30 October found that ₹26.34 crore was diverted from EKI Energy Services through fake expenses in FY22 and FY23. The company, its managing director Manish Kumar Dabkara and 6 others face fines totalling ₹88 lakh. So how does ₹26 crore go missing, but the fine is less than ₹1 crore? The answer lies in the difference between punishing someone and getting the money back.

EKI sells carbon credits, which companies buy to offset their carbon emissions. One way it earns these credits is by distributing cookstoves to rural households. EKI booked revenue as soon as it distributed the stoves, even though it had to deliver the credits to buyers over several years. After its auditor objected, the company revised its accounts, removing ₹197.04 crore from the first 3 quarters of FY23. SEBI also found that EKI paid commissions and fees for services that were never provided. It identified ₹26.34 crore as money diverted through these payments.

SEBI can impose fraud penalties of up to ₹25 crore or 3 times the profit made. But it said it could not measure the gains made or the losses suffered by investors. It also considered the fact that EKI had corrected its revenue figures. EKI was fined ₹12 lakh and Dabkara ₹28 lakh. They also face market bans of 2 months and 12 months, respectively.

But here's the catch: a fine paid by EKI comes out of the company's own money, which belongs to its shareholders. It doesn't put the diverted ₹26.34 crore back. For that, SEBI's order separately directs Dabkara to take immediate steps to recover the money for EKI.

And the money matters. EKI's revenue has fallen from ₹1,800 crore in FY22 to just ₹86.52 crore in FY26. The ₹26.34 crore it needs to recover is nearly 30% of its latest annual revenue. For a company this much smaller than it used to be, getting that money back could make a real difference.

3 bars in rupees crore: 48.00 diverted as SEBI's notice alleged, 26.34 diverted as its final order found, and 0.88 of fines on all 8 people and companies charged.

8 bars in rupees lakh, each split into the fraud fine and other fines: Dabkara 28, Agarwal 19, Sharma 13, the company 12, Sheikh 6, Gupta 4, Maksi Wala 4 and Sahu 2, with the market ban beside each.

6 bars in rupees crore: 190.79 in FY21, 1,800.12 in FY22, 1,286.45 in FY23, 263.39 in FY24, 406.37 in FY25 and 86.52 in FY26.

Sources