It seems your dynamic sql prepartion is worng, Try with below block
String selectedvalue = "";
int count = 0;
sSQL = "SELECT DISTINCT(EM_MobileNo) FROM ps.employee_master ";
foreach (ListItem li in ListBox1.Items)
{
if (li.Selected)
{
if (string.IsNullOrEmpty(selectedvalue))
{
selectedvalue = li.Value + "'";
}
else
{
selectedvalue += ",'" + li.Value + "'";
}
}
}
sSQL = sSQL + " WHERE EM_Department like '" + ddDepartment.SelectedValue.ToString() + "'";
sSQL = sSQL + " AND EM_SerialNo IN ('" + selectedvalue + ")";