CHG-1 Late Fees & Ad Valorem Calculator (FY 2026-27) — Charge Creation

Pursuant to Section 77(1) of the Companies Act, 2013, Form CHG-1 must be filed within 30 calendar days from the date of creation or modification of the charge (i.e. the date when the loan agreement, sanction letter, or deed of hypothecation/mortgage is executed).

The normal filing fee is governed by Table A (Items 5 & 6) of the Companies (Registration Offices and Fees) Rules, 2014 based on authorized share capital: ₹200 (capital < ₹1 Lakh or companies without share capital), ₹300 (₹1L to ₹5L), ₹400 (₹5L to ₹25L), ₹500 (₹25L to ₹1 Crore), and ₹600 (₹1 Crore or more).

Under Section 77(1) first proviso, the ROC may permit registration within an additional 30 days (Days 31 to 60 from creation, i.e., 1 to 30 days delay) upon payment of additional fees: Small Companies and OPCs pay 3× the normal filing fee, while Other Companies pay 6× the normal filing fee. No ad valorem fee applies in this first extension window.

Under Section 77(1) second proviso, if filed within a further period of 60 days (Days 61 to 120 from creation, i.e., 31 to 90 days delay), the company must pay the extension multiplier (3× for Small/OPC, 6× for Others) PLUS an Ad Valorem fee based on the secured loan amount: 0.025% of the charge amount for Small Companies/OPCs (capped at ₹1,00,000) or 0.05% of the charge amount for Other Companies (capped at ₹5,00,000).

The ad valorem additional fee is subject to strict statutory ceilings under the 2019 Amendment Rules: ₹1,00,000 maximum for Small Companies and One Person Companies (0.025%), and ₹5,00,000 maximum for all other companies (0.05%).

Beyond 120 days from the date of charge creation (delay exceeding 90 days), there is an absolute statutory hard stop under Section 77. The Registrar of Companies (ROC) has NO legal jurisdiction to register the charge or accept late fees. Filing Form CHG-1 directly on the MCA portal is blocked.

No. The ROC's discretionary extension power is capped at a further period of 60 days (total 120 days from creation, which corresponds to 90 days delay past the initial 30 days). Beyond 120 days, only the Regional Director (delegated by the Central Government) under Section 87 has the legal authority to condone the delay upon hearing a formal petition.

To condone delay exceeding 120 days (delay > 90 days): (1) File a petition with affidavit before the Regional Director (RD) in Form CHG-8; (2) Serve notice to the ROC and charge-holder bank; (3) Attend the hearing and obtain a formal Condonation Order; (4) File the RD Order with the ROC in Form INC-28 within 30 days; (5) File Form CHG-1 attaching the SRN of approved INC-28.

Yes. Under Section 78, if the company fails to register the charge within the initial 30 days, the bank or financial institution can apply to the ROC for registration along with the instrument. The ROC serves a 14-day notice to the company. If the company fails to show cause, the ROC registers the charge, and the bank is legally entitled to recover the entire filing fees and costs from the company.

No. The ₹100 per day penalty under Section 403 applies exclusively to Annual Returns (MGT-7/7A) and Financial Statements (AOC-4). Form CHG-1 is governed strictly by the Chapter VI charge timeline (30-60-120 days) and ad-valorem fee structure.

Creation of charge refers to registering a fresh security interest created in favor of a lender for a new loan facility. Modification of charge refers to recording changes in existing terms—such as an enhancement or reduction of loan limits, change in interest rate, release or substitution of mortgaged property, or addition of new consortium lenders.

Mandatory attachments include: (1) Certified true copy of the instrument creating/modifying the charge (Sanction Letter, Deed of Hypothecation, Mortgage Deed); (2) Certified Board Resolution under Section 179(3)(d); (3) Special Resolution under Section 180(1)(a)/(c) if borrowing limits exceed capital; (4) NOC from existing charge-holders if pari-passu; and (5) Certification by a practicing CA, CS, or CMA.

CHG-1 is required for vehicle loans if the vehicle is registered in the name of the company and hypothecated to the financier. It is NOT required for purely unsecured loans, clean overdrafts, or personal guarantees given by directors in their individual capacities where no corporate assets are hypothecated.

Under Section 77(3), an unregistered charge is completely VOID against the liquidator and any other creditors of the company in the event of winding up. The lending bank loses its secured creditor status and becomes an ordinary unsecured creditor. However, the underlying debt contract remains valid, and the loan becomes immediately repayable.

Form CHG-1 is NOT processed under Straight Through Process (STP). It is routed to the jurisdictional Registrar of Companies (ROC) for manual verification and scrutiny of the attached loan instruments. Once approved by the ROC, an official Certificate of Registration of Charge (Form CHG-2 for creation or Form CHG-3 for modification) is issued electronically.