Creation of charge

Registration of charge on vehicles is mandatory under Companies Act 2013 and the company and the officers in default will be liable for penal action.  Non-compliance has to be reported in secretarial audit report and also in MGT.8 wherever applicable.

Dear Sir,

But Bank is not enforce and bank is oki with only RTO charge. 

Its old practice that some bank create charge with RTO and ROC , whereas some banks only direct to create charge at RTO only.

They not direct to create charge at ROC , in such case how we can enforce them to sign such Charges forms,etc.

and in such case wt is the duty and respo of officer.

regards

Pl go through Section 77 carefully which answers your queries.  As per the Section, primarily  it is the duty of the company to get the charge on its property or assets registered with the ROC.  No exemption has been provided from registration of charge on vehicles.  For penal provision pl refer Sec.86.  Minimum penalty is Rs.1 lac which can go upto Rs.10 lacs.  Besides, every officer in default will be punishable with imprisonment for a term which may extend to 6 months  or with fine which shall not be less than Rs.25,000 but which may extend to Rs.1 lac or both.