The Ministry of Corporate Affairs has vide its notification dated 17thJune 2020 (General Circular No. 23/2020) introduced the Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013and further amended by notification dated 28th September 2020 by General Circular no 32/2020.
As the relaxation from the commencement of Novel Coronavirus (COVID-19) across the world, aforesaid scheme has been introduced by The Ministry of Corporate Affairs.
Provisions of the Scheme:
For filing Forms CHG-1 and CHG-2 (for other than Debentures and for Debentures including rectification respectively) where modification/creation of charge:
- is before 01.03.2020 but under Section 77 as of 01.03.2020, the timeline for filing form had not expired.
- is between 01st March 2020 to 31stDecember 2020 (both dates inclusive)
Relaxation of Time:
Payment of Fees:
Non- Applicability of Scheme
- Before the date of publishing of this circular, forms CHG-1 and CHG-9 had already been filled.
- According to section 77 or 78 of the Act, before 01.03.2020 the timeline for filing the form has expired.
- Despite the aforementioned time, the timeline (for filing forms) expires at a future date.
- For the satisfaction of charges file form CHG-4.
Thus, in the continuous endeavours by the Ministry of Corporate Affairs to provide various relaxations regarding the compliance of Filing of various e-Forms, the scheme for relaxation of filing Forms for Charge is of much importance.
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Posted by: CA Neetu Saini