Amendment in Registration of charges

Under Sections 77 to 87 of the Companies Act, 2013, every Indian company must register charges created on its assets with the Registrar of Companies. Form CHG-1 (and CHG-9 for debentures) is filed within 30 days of creation, with a further 60 days available on payment of additional fees and ROC approval. Form CHG-4 reports satisfaction of charges within 30 days of payment. Failure to register makes the charge unenforceable against the liquidator or other creditors under Section 77(3) and attracts penalties under Section 86. MCA V3 now performs strict data validation against master records.

Mayank Wadhera

Published: 14 Sept 2022

Updated: 16 May 2026

4 min read

Charge creation, modification and satisfaction sit at the heart of corporate borrowing. The Companies (Registration of Charges) Rules have been amended several times since 2013, and recent updates on the MCA V3 portal — combined with stricter ROC scrutiny — make charge management one of the most operationally consequential compliance areas for any borrower in 2026.

What a charge is

Under Section 2(16) of the Companies Act, 2013, a 'charge' means an interest or lien created on the property or assets of a company or any of its undertakings, or both, as security, including a mortgage. Companies must register every charge created — whether on movables, immovables, intangibles or floating assets — with the ROC, irrespective of the lender's identity.

Key timelines under the amended framework

Form CHG-1 (creation/modification of charges other than debentures) must be filed within 30 days of creation.
Where the 30-day window is missed, filing is permitted with the ROC's approval within 60 days, on payment of additional fees.
A further 60 days is allowed with Central Government approval (under Section 87) on application — but the route is now narrower and discretionary.
Form CHG-4 for satisfaction of charges must be filed within 30 days of payment / cessation of charge.
Form CHG-9 covers charges related to debentures.

What has changed recently

Tighter ROC scrutiny — V3 portal validates lender PAN/CIN/LEI, charge type and asset description against master data, rejecting mismatches automatically.
Defined LEI requirement for certain lender categories above prescribed thresholds.
Mandatory affidavit support for condonation applications under Section 87.
Streamlined CHG-4 filing where the satisfaction is confirmed by the secured party.
Linkage to Form INC-22A (ACTIVE) so that any inconsistency in registered office or charge data blocks subsequent filings.

Documents to attach in CHG-1 / CHG-9

Instrument creating or modifying the charge (loan agreement, deed of hypothecation, mortgage deed, debenture trust deed).
Board resolution authorising the creation of charge and the signatory.
Particulars of the property charged and the amount secured.
Particulars of the holder of the charge with PAN/CIN/LEI.
Where applicable, NoC from prior charge-holders.

Practical issues borrowers face

First, time slippage — directors often sign sanction letters that backdate the security creation, leaving 30 days to file. Track creation by event date, not document date. Second, asset description — vague descriptions ('all current assets') survive only if backed by a clean hypothecation deed. Third, satisfaction filing — most companies forget CHG-4 when a loan is repaid, leaving the charge open on MCA records and clouding due diligence years later. Run a quarterly Index-of-Charges reconciliation.

Consequences of non-registration

A charge not registered within the prescribed period is not enforceable against the liquidator or any creditor of the company under Section 77(3) — a fatal commercial outcome for the lender.
Fines on company and officers in default under Section 86.
Late filings carry steep additional MCA fees that escalate with delay.
Director DIN-related restrictions where charge data is inconsistent.

Lender's perspective

From the lender's side, ensuring CHG-1 / CHG-9 filing within the 30-day window is a credit operations imperative. Many lenders now make the disbursement instalment conditional on receipt of the SRN as proof of filing. For loans where security creation is staggered (term loan with hypothecation deed signed at first drawdown, mortgage perfected at second), each event resets the 30-day clock; lenders should track each leg separately.

Modification and satisfaction nuances

Any change in terms — quantum, security pool, interest rate where material — is a modification requiring CHG-1 filing.
Replacement of one secured asset with another within the same hypothecation pool is generally not a modification, but should be reflected in registers.
On full repayment, file CHG-4 promptly; otherwise the charge remains on MCA records indefinitely and clouds future fundraising.
Where the lender refuses to sign satisfaction, the company can approach the ROC under Section 82(2) with proof of repayment.

Conclusion

Charge registration is no longer a back-office task you can delegate and forget. Build a charge register inside the company, reconcile it to MCA's Index of Charges every quarter, and treat the 30-day filing window as a hard deadline. The discipline pays off when you next refinance, raise venture debt, or face a buyer running diligence — none of those moments tolerates a stale charge ledger.

Frequently Asked Questions

Within what time must a charge be registered?

A charge must be registered with the ROC in Form CHG-1 (or CHG-9 for debentures) within 30 days of its creation. The window extends to 60 days more on payment of additional fees and ROC approval, and a further 60 days with Central Government approval under Section 87 in narrow cases.

What happens if a charge is not registered?

Under Section 77(3), an unregistered charge cannot be enforced against the liquidator appointed under the IBC or against any other creditor of the company. The borrower may still be liable to the lender contractually, but the security loses its priority. Penalties under Section 86 also apply.

How is satisfaction of a charge reported?

Form CHG-4 is filed within 30 days of payment or cessation of the charge. Where the secured party (typically the lender) confirms satisfaction, the process is streamlined; otherwise the company can apply with evidence of repayment for the ROC to issue notice and remove the charge.

Can a missed charge filing be condoned?

Yes, but the route is narrower in 2026. Within 30 to 60 days delay, ROC approval with additional fees is sufficient. Beyond that, the Central Government's powers under Section 87 are used in narrow circumstances and require an affidavit-backed application demonstrating a genuine reason.