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Roc charge creation

dkm associates (5 Points)

14 August 2018

Dear Experts,

What will happen if a Company failed to create ROC Charge in MCA..???

What will be the impact to Banker and to the company in the failure..

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3 Replies

Santhosh Gundinahole (Studnet) (347 Points)
Replied 14 August 2018

For company - it Will amount to penalty of Rs. 1lakh to 10Lakh.
And
Every officer shall be punishable with fine of Rs. Not less than 25K, which may go upto Rs. 100K or imprisonment for term which may extended to 6 months or both.

Consequences of non registration of Charge with MCA.
These consequences will be made applicable only during the winding up of company.

During liquidation - Charge holder or creditors shall assume unsecured creditors status, in case of non registration of charges.

However Company can file an application of CHG-1 / CHG-9 for registration of charges at any time after creating charge.
Upto 30 days from the date of creation of charges- Company can above form file with normal fee.
Upto 300 days, after expiry of 30days - additional fees with condonation of delay with registrar in form CHG-10.
Above 300 days- condonation of delay by making an application to RD in form CHG-8.

Clear?

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