The tribunal grants interim relief as the drone startup contests SEBI’s charges of revenue inflation, IPO misuse, and disclosure lapses
Tribunal Steps In With Partial Relief
The Securities Appellate Tribunal (SAT) has granted interim relief to BSE SME–listed drone company DroneAcharya, staying SEBI’s penalty recovery order pending appeal.
As per a filing by DroneAcharya, the tribunal has:
- Admitted the company’s appeal against SEBI’s November 28 order
- Temporarily halted the recovery of the full penalty amount
- Directed DroneAcharya to deposit 50% of the ₹75 Lakh penalty within four weeks
- Scheduled the next hearing on February 12, 2026
SEBI has been given four weeks to respond, after which DroneAcharya has two weeks to file its rejoinder.
SEBI’s Action: Allegations of Financial Irregularities
SEBI’s enforcement action followed a detailed investigation that uncovered alleged irregularities in financial reporting and IPO fund usage by DroneAcharya and its associates. On November 28, SEBI:
- Imposed a total penalty of ₹75 Lakh, including:
- ₹20 Lakh each on cofounders Prateek Srivastava and Nikita Srivastava
- ₹10 Lakh on DroneAcharya itself
- ₹10 Lakh each on Instafin Financial Advisors and advisor Sandeep Ghate
- ₹5 Lakh on Micro Infratech
- Barred the company and involved individuals from accessing capital markets for up to two years
- Froze assets of the company and its promoters during the ongoing probe
Core Allegations: Inflated Revenue & Misuse of Funds
SEBI’s findings pointed to multiple red flags:
- Inflated Revenues:
- ₹12.35 Cr—35% of FY24 revenue—reportedly came from just two entities, Triconix and IRed, where no verifiable delivery of goods or services was found
- Addresses linked to these “customers” were traced to residential premises or unrelated shops
- Accounting Manipulation:
- If the suspicious transactions were excluded, DroneAcharya would have reported a loss of ₹3.91 Cr instead of the declared profit of ₹8.44 Cr
- Misuse of IPO Funds:
- Of the ₹33.96 Cr raised in the December 2022 IPO, the company said ₹27.99 Cr was earmarked for drone procurement
- SEBI found that only ₹70 Lakh was actually spent, with the rest parked in FDs or routed via multiple undisclosed accounts
- Undisclosed Related-Party Dealings:
- Transactions involving Awyam Synergies, a firm with shared directors, were not properly disclosed
- Additional concerns were flagged over pre-IPO funding transparency
Company Pushes Back
DroneAcharya has contested SEBI’s conclusions, stating that the findings do not reflect the full facts of the case. The company’s board resolved to challenge the order, and the SAT’s interim stay provides partial relief during the pendency of the appeal.
This appeal marks an important test case for the company, which had gained early visibility as a startup success story in the drone sector.
The Road Ahead
While the SAT’s stay offers temporary protection against full penalty enforcement, the matter remains under judicial review. The upcoming hearings will determine whether DroneAcharya can clear its name—or face deeper regulatory consequences.
SAT’s direction to deposit half the penalty upfront indicates that the tribunal found grounds for a fair hearing, but also signals the seriousness of the allegations.
