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MCA introduces scheme for relaxation of time for filing forms related to creation or modification of charges

MCA vide General Circular dated 17th June, 2020 has introduced Scheme for relaxation of time for filing forms related to creation or modification of charge i.e CHG-1 and CHG-9 under the Companies Act, 2013(the “Act”). The salient features of the scheme are as follows:

Particular Category – I Category- II
Applicability Date of creation and modification of charge is  before 1-Mar-20, but the timeline for filing such form had not expired under section 77 of the Act as on 1-Mar-20 Date of creation and modification of charge falls on any date between 1-Mar-20 to 30-Sep-20 (both dates inclusive).
Relaxation of time The period beginning from 1-Mar-20 and ending on 30-Sep-20  shall not be reckoned for the purpose of counting the number of days under section 77 or section 78 of the Act i.e 120 days from creation/modification. The period beginning from the date of creation/ modification of charge to 30-Sep-20 shall not be reckoned for the purpose of counting of days under section 77 or section 78 of the Act i.e 120 days from creation/modification.
Applicable Fees 1. If the form is filed on or before 30-Sep-20, the fees payable as on 29-Feb-20 shall be charged.

2.  If the form is filed thereafter, the fees shall be charged after adding the number of days beginning from 01-Oct-20 and ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29-Feb-20.

1. If the form is filed before 30-Sep-20, normal fees shall be payable.

2. If the form is filed thereafter, the first day after the date of creation/modification of charge shall be reckoned as 01-Oct-20 and the number of days till the date of filing of the form shall be counted for the purposes of payment of fees.

Non- Applicability The scheme is not applicable on:

1. CHG-1 and CHG-9  already been filed before the date of issue of this Circular.

2. The timeline for filing the form has already expired under the Act prior to 1-Mar-20.

3. The timeline for filing the form expires at a future date, despite exclusion of the time provided i.e after 30-Sep-20

4. Filing of Form CHG-4 for satisfaction of charges

The complete circular with all the relaxations is attached herewith:

Circular23_17062020

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