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Charges

CHG-1

Registration of creation or modification of charge. Register a charge, or a modification of an existing charge, with the ROC.

Who filesCompanies creating a charge on property in India or, in the cases the Act states, outside India.
Governing lawSection 77
DueWithin 30 days of creation or modification. Further delay follows section 77 and the charge rules, and is not an ordinary additional-fee filing forever.
How it is filedMCA V3.
FeeCharge fee based on the amount secured, plus additional fee for delay within the permitted window.
CertificationBoth the company and the charge-holder particulars are part of the form.

The law

Section 77. The date is the date of the instrument. Section 86, as substituted from 21 December 2020, is the penalty for a default in this chapter: ₹5 lakh on the company and ₹50,000 on every officer in default. False particulars are section 447, not this penalty.

The deadline

Within 30 days. After that, the current proviso to section 77, and section 87, set any further window and any further fee. This page does not copy a day-count from an older print of the section.

If it is missed

An unregistered charge is not taken into account by the liquidator or any other creditor. The company’s own register under section 85 is still kept.

The remedy

File CHG-1 inside the window the section still allows. Do not back-date the instrument. When the debt is paid, file CHG-4. An open charge blocks a clean strike-off.

When to file

  • A new loan secured by a charge.
  • A change in terms, limits or property.

Attachments

  • Instrument of charge
  • Sanction letter where relevant

Steps

  1. Date the creation from the instrument, not from the first drawdown if they differ.
  2. File CHG-1 within 30 days.
  3. Record the charge ID in the register of charges.

Penalty if missed: section 86. ₹5,00,000.

Questions

What is CHG-4?
Satisfaction of the charge. File it when the debt is repaid and the charge-holder confirms, so the register does not keep showing an open charge.

VerifiedAct-sourced — Sections 77 and 82.