What is Form CHG-4?
Form CHG-4 is filed to notify the RoC about the payment or complete satisfaction of any registered charge within 30 days from the date of such payment. This form plays a vital role in ensuring transparency and compliance in corporate financial dealings.
Legal Framework:
- Section 82, Companies Act, 2013: Mandates companies to inform the RoC in Form CHG-4 about the full payment or satisfaction of charges within 30 days.
- Rule 8(1) of Companies (Registration of Charges) Rules, 2014: Specifies the procedure for filing Form CHG-4 along with necessary fees and attachments.
Want to File CHG-4: File With Legal Parivar
Key Requirements of Form CHG-4:
- Company Details: Name, address, and Corporate Identity Number (CIN).
- Charge Details:
- Type of charge (e.g., mortgage, hypothecation).
- Identification details of the charge, including the Charge ID obtained during the initial filing (CHG-1).
- Date of satisfaction of the charge as per the No Objection Certificate (NOC) from the charge holder (e.g., bank).
- Attachments:
- NOC from the charge holder confirming the satisfaction of the charge.
- Any other relevant documents as required by the RoC.
- Applicant: The form can be filed by either the company or the charge holder (e.g., bank).
Process of Filing Form CHG-4:
- Preparation: Gather all necessary details and documents.
- Submission: File electronically on the MCA21 portal of the RoC.
- Verification: RoC verifies the submitted information.
- Approval: Upon verification, the RoC registers the satisfaction of charge and issues a Certificate of Registration of Charge.
Consequences of Delay:
- Additional Fees: If filed beyond the 30-day period, fees increase progressively based on the duration of delay.
- Condonation of Delay: Application in Form CHG-8 is required for condoning delay, which is processed alongside Form INC-28.
Conclusion:
Form CHG-4 ensures that companies comply with statutory requirements regarding charges on their assets, providing transparency to stakeholders and protecting creditor interests. It is essential for maintaining the integrity of corporate financial transactions under Indian law.
