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Query regarding index of charge on mca

dwitichopra (CA Job) (198 Points)

30 September 2015

Dear Members,

While i was looking for charges registered on company on the MCA portal i came across a situation for which i am seeking clarification here

Two charges were registered against the company with two separate charge IDs but they were registered on the same date and for the same amount. What does this imply? Does it mean co has two facilities from the bank/ NBFC for same amount or does it mean that charges have been created on two properties for a single facility. I think its the latter but still i want confirmation. Please see the attachment which contains the index of charge of the company.

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6 Replies

Radhika (Company Secretary) (303 Points)
Replied 30 September 2015

Sometimes it so happens that two charge ids are created for the same amount... one for hypothecation and the other one for mortgage.

You will get a clarify if you download and go through the forms filed for such charges.

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dwitichopra (CA Job) (198 Points)
Replied 30 September 2015

Dear Ms. Radhika,

Thanks alot for your prompt reply. You said two charge IDs could be for hypothecation and mortgage does it mean that one is say for CC limit and other for Term Loan. I also came across cases where there was a time lag of a month between creation of charges but otherwise the case is same charge created for same amount with two charge IDs in favour of the same bank/ NBFC. Does this case differ from the one i shared in my previous query or its the same case?

Lastly, getting the forms filed by the company for creation of charges would be a paid service correct?

Radhika (Company Secretary) (303 Points)
Replied 30 September 2015

If you look at the index of charges, both are modifications. It could be for any secured credit facilities.

We have come across a similar situation recently. There was a hypothecation and a mortgage on the same charge. However, the existing id that was created was modified for mortgage and a new charge id was created for hypothecation, as suggested by the bank.

Thats why it is better to download and go through the forms.

Yes, it is a paid service.

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dwitichopra (CA Job) (198 Points)
Replied 30 September 2015

So to just sum up, two charges with two charge IDs could mean two charges are registered on the same property (for example for Term Loan and CC Limit in this case though the charges are modified but 2 charges do exist) and it does not mean that two properties are given as security for a single facility (say term loan of a hefty amount)

In the attachment shared previously, can i conclude that total charges registered with MCA are 153.7 Crs which implies that the company must have total facilities of 153.7 Crs? Or does it mean that company has total facilities of 77.79 Crs (1.89 Crs + 75.91 Crs) and two properties are offered as securities for loan/ CC limit of 75.91 Crs

Could you please correct me if i am wrong in my inference.

This is for my understanding only so no point in paying for this service.

prakash (Company Secretary) (1352 Points)
Replied 30 September 2015

Chopra,

It differs case to case, duplication of filing could have happend or there might be two charges on same day with same bank, all what we can do here guess work, hence, i request you to download the forms from MCA portal and get the factual information.

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dwitichopra (CA Job) (198 Points)
Replied 30 September 2015

Mr. Prakash,

I faced the same issue while i was reviewing the charges registered of a number of companies. So yeah it seems downloading the forms is the only way to know the factual details.