Jayanta Bandyopadhyay 23 August 2024

Chg1 on mca portal

We took term loan from Bank (Rs. 10 Crores) and executed Deed of Hypothecation besides CHG1 on MCA Portal.

The values of hypothecation / charges were much higher (Rs.25 Crores- as Building can not be split).

Now, we are taking term loan of Rs.5 Crores from same bank and are ready to to execute Deed of Hypothecation. However, since our first ranking exclusive charges get revised at Rs.15 Crores - while our mortgaged building has a value of Rs.25 Crores.

Should we opt for re-execution of the Deed for the differential value?

CHG1 -can it be revised from Rs. 10 Cr to Rs.15 Cr- the underlying building has a market value of Rs.25 Cr.

Please guide.

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1 Replies

T. Kalaiselvan, Advocate (Advocate) 23 August 2024

The purpose of filing a charge for company registration is to protect both the lender and the third party.

Any third party that deals with the same property must be aware that the property is already under charge with a lender, and all parties must agree on the charge details before any transaction is completed.

CHG-1 is a crucial document that companies has to file in order to record any amendments to their charges.

The objective of filing eForm CHG-1 is to fulfill the legal duty placed on company registration by Company Laws mandating them to register information about charges created or modified within a specific time period.

So you may take a decision whether to opt for re-execution of the CHG form for the differntial value alone or you are required to file a form afresh for the entire value.

you can consult your adutior or a consultant in the local and proceed as suggested