Relaxation in additional fee of filing of charge related forms i.e. Form CHG-1 and CHG-9

Lakhan Gupta | Last updated: 07 May 2021

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Quick Summary

The Ministry of Corporate Affairs (MCA) has introduced a relaxation for filing charge-related forms like CHG-1 and CHG-9. This means the period between 1st April 2021 and 31st May 2021 will not be counted when calculating the 120-day deadline for filing these forms. This exclusion also applies to the calculation of any additional or ad valorem fees.

As per Section 77, a Form for creation or modification of Charge can be filed within 120 days from the creation of charge with an additional fee and/or ad valorem fee.

MCA has given relaxation of the period for purpose of calculating the above period of 120 days for filing of charge related e-forms.

Relaxation on Filing Charge Forms CHG-1 and CHG-9

Highlights of relaxation are below

I. Relaxation is bifurcated into two categories i.e.

(i) Charge was created / modified before 01.04.2021 and the timeline of 120 days have not been elapsed before 01.04.2021;

(ii) Charge was created / modified between 01.04.2021 to 31.05.2021 (both inclusive)

II. Period from 01.04.2021 to 31.05.2021 (i.e. silent period) shall not be counted for purpose of calculation of maximum period of 120 days

III. Silent Period shall be excluded for purpose of calculation the additional fee and/or ad valorem fee.

For illustrative purpose, please refer the given structure to understand the original due dates and relaxed due dates if the charge was created / modified before 01.04.2021.

Due date of filing of Form CHG-1 and CHG-9

Attached File : 3134818_44634_fb_img_1620205563613_converted.pdf

FAQ :

The MCA has provided a relaxation for filing charge-related forms, specifically excluding the period from 1st April 2021 to 31st May 2021 from the 120-day calculation period.

This relaxation applies to charge-related e-forms, including Form CHG-1 and Form CHG-9.

The period from 1st April 2021 to 31st May 2021, referred to as the 'silent period', will not be counted towards the maximum 120-day period for filing.

Yes, the silent period is also excluded when calculating any additional fee and/or ad valorem fee that may be applicable.

The relaxation is bifurcated into two categories: charges created/modified before 1st April 2021 where the 120-day timeline hadn't elapsed, and charges created/modified between 1st April 2021 and 31st May 2021.

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