The Securities and Exchange Board of India (SEBI) has imposed a 12-month ban on the Managing Director of EKI Energy Services Ltd., Manish Kumar Dabkara, for allegedly committing acts of financial misrepresentation. The SEBI has also imposed a Rs 88 lakh fine on EKI Energy Services, Rs 12 lakh on Dabkara, Rs 13 lakh on Sharma, Rs 6 lakh on Sheikh, and Rs 19 lakh on Agarwal. Additionally, the SEBI has prevented the recovery of funds that were allegedly siphoned off from EKI Energy Services.

It has also noted that 'EKI's publication and continued disclosure of prematurely recognised revenue of Rs 197.04 crore constituted reckless financial misrepresentation connected with investor decisions concerning its listed shares'. The SEBI has also noted that EKI had siphoned off approximately Rs 26.34 crore using false evidence during the years 2021-22 and 2022-23, causing a negative valuation error in its profits. 'The company booked fictitious expenses against services not rendered', said the SEBI, adding that the payments made against such evidence 'consequently constituted the siphoning off of funds of the service'. The SEBI has also noted that Dabkara was responsible for the continued publication of incorrect financial information and for inadequate monitoring of the registration procedures of the company.

It has also prevented Sharma, Sheikh, and Agarwal from committing regulatory violations. The SEBI has imposed a Rs 2 lakh fine on Sahu and a Rs 4 lakh fine on Gupta and Burhanuddin Ali Husain Maksi Wala. The entities have been requested to pay the fines within 45 days.