Background
Under the Companies Act, CHG forms are used for reporting the creation, modification, and satisfaction of charges over a company’s assets provided as security to lenders. The requirement arises from Sections 77 to 87 of the Companies Act, 2013, which mandate companies to register such charges with the Registrar of Companies to ensure transparency and creditor protection. These filings establish a public record of encumbrances on company assets, helping banks, investors, and other stakeholders assess financial exposure and prevent multiple financing of the same asset. Through prescribed CHG e-forms under the Companies (Registration of Charges) Rules, 2014, the system promotes financial discipline and legal accountability in corporate lending.
Applicability
CHG forms are required to be filed by:
Compliance Requirements under the Act
A company creating a charge within or outside India, on its property or assets or any of its undertakings, whether tangible or otherwise, and situated in or outside India, to register the particulars of the charge within 30 days of its creation or modification (for other than debentures)
A company shall give intimation to the Registrar in form CHG 4, of the payment or satisfaction in full of any charge registered under this Chapter within a period of 30 days from the date of such payment or satisfaction
Application for registration of creation or modification of charge for debentures or rectification of particulars filed in respect of creation or modification of charge for debentures to be filed within 30 days of creation/modification.
Application to Central Government for extension of time for filing particulars of registration of satisfaction of charge (where filing not done within a period of 300 days from date of satisfaction or payment of charge) OR for rectification of omission or misstatement of any particular in respect of creation/ modification/ satisfaction of charge
Penalty & Punishment
For non- compliance of any provisions of the chapter, the company will be liable to a penalty of Rs. 5 lakhs and every officer of the company in default shall be liable to a penalty of Rs. 50,000/. If a person wilfully furnishes false/incorrect information or knowingly supresses any material information required to be registered shall be liable under Section 447
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