What is CHG-1?
Form CHG-1 is filed to register the creation or modification of a "Charge" (a lien, mortgage, or security interest) on the assets of a company. When a company takes a loan from a bank and pledges its property or assets as collateral, registering this charge via CHG-1 provides public notice of the bank's secured interest.
Who Must File CHG-1?
Every company that secures a loan by pledging its tangible or intangible assets must file this form to protect the interests of the lending institution.
CHG-1 Due Date & Timeline
The form must be filed within 30 days from the date the loan agreement or instrument creating the charge was officially signed.
Consequences of Late Filing CHG-1
CHG-1 has one of the most punitive delay mechanics. Missing the 30-day window triggers an Ad Valorem fee (a percentage based on the loan amount, usually 0.05% capped at ā¹5 Lakhs) on top of standard multiplier penalties. A delay beyond 120 days requires a complex Central Government condonation process.