After receiving timelines related requests, finally, on Wednesday, June 17, 2020, the Ministry of Corporate Affairs (MCA) came up with a Scheme for providing relaxation in time for filing several forms that are related to amendment or creation of charges under the Companies Act, 2013. It will provide a gateway for compliance for the registration of the charge.
Under the Companies Fresh Start Scheme, 2020 as laid out in the general circular, dated March 30, 2020, the benefit of waiver of additional fees was not extended to the charge related documents. Therefore, it has been suggested that some dispensation may be provided for filing of charge related documents as well.
The benefit of exemption of additional fees under the Companies Fresh Start Scheme, 2020, laid down in the General Circular on March 30, 2020, was not given in the documents related to the charge. Hence, authorities received suggestions that some exemption may be provided for filing documents related to the charge as per the companies act 2013
Now, the newly released scheme will be applicable to the filing of Form No. CHG-l and Form No. CHG-9 by a charge holder or a company. In which the due date for creation or modification of charge was before March 1, 2020, but the timeline for filing these form had not expired as per the section 77 of Companies Act as on March 1, 2020, or the said date is falling in between March 1, to September 30, 2020.
The released circular states that “If the form is filed on or before 30.09.2020, the fees payable as on 29.02.2020 under the Fees Rules for the said form shall be charged. If the form is filed thereafter, the applicable fees shall be charged under the Fees Rules after adding the number of days beginning from 01.10.2020 and, ending on the date of filing plus the time period elapsed from the date of the creation of charge till 29.02.2020,”.
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The MCA prohibited the applicability of this circular on the CHG-1 and CHG-9 forms, which have been filed before the circular issue date. The due date to furnish the form has been already expired before March 1, 2020, concerning section 77 or section 78 of the Companies Act; The time duration for furnishing the form expires at a future date, regardless of time exclusion, and furnishing the Form CHG-4 for the satisfaction of charges.
Several companies are struck off, they should be revived also and there Din No activated for filing, this can generate huge revenues to the Govt of India.
This is the right time for the Honorable Finance Minister to take action.