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Creation of charge

Yogesh Bhatt (Company Secretary) (475 Points)

13 April 2015

Hello,

If bank do not require charge register at ROC for hypo of vehicle or machinery ,then is company officer/s defaulted ?

what would be position under companies act 2013 and rules then under .

and is it reqire to give such disclouse about charge not register in roc either in Audit Report or Board Report ?

regards

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3 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 13 April 2015

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.

Yogesh Bhatt (Company Secretary) (475 Points)
Replied 13 April 2015

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

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 14 April 2015

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.