Charges Filing on MCA (Form CHG-1 / CHG-4)

A charge under Section 2(16) is any security interest created by a company over its property — mortgage, hypothecation, pledge. Section 77 requires every charge to be registered with the ROC within 30 days of creation. Filing: Form CHG-1 (for companies other than debentures) or CHG-9 (for debentures). Late filing is possible up to 60 days with condonation fees; beyond 60 days, only NCLT can condone.

Section 77(3): an unregistered charge is void against the liquidator and any creditor. The money secured becomes immediately payable by the company. This is a drastic consequence — a bank's security can become unsecured overnight if the charge is not registered in time. The company and every officer in default are also liable for a penalty of ₹1 lakh to ₹10 lakh under Section 86.

On repayment of the secured debt, the company files Form CHG-4 (satisfaction of charge) within 30 days. The ROC records the satisfaction in the Register of Charges. If the company fails to file, the lender/chargeholder can file directly under Section 82(2). The charge entry remains in MCA records until CHG-4 is filed and approved — this shows as a "live charge" on any MCA search.

Any change in the terms of a registered charge — e.g., increase in limit, change in security property, addition of borrower, or change in interest rate — requires filing Form CHG-1 for modification within 30 days of the modification. Many banks overlook this step for annual renewal of working capital limits; each renewal with changed terms is technically a modification requiring re-filing.

By searching the company's CIN on the MCA21 portal — the "Charges" tab shows all registered charges with chargeholder name, amount, and date. Searches are public and free. The CA should run an MCA charge search as part of due diligence for any new lending, M&A, or security creation. ROC issues a "certified true copy of certificate of registration of charge" from the register for formal verification.