Frequently Asked Questions on Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013 issued by the Ministry of Corporate Affairs, Government of India on 17th June, 2020

The Ministry of Corporate Affairs has issued a Circular 23/2020 dated 17th June, 2020, and has introduced a new scheme called “Scheme for relaxation of time for filing forms related to creation or modification of charges under the Companies Act, 2013”.

Under section 77 & 78 of the Companies Act, 2013, the companies or the charge holders are required to file forms related to creation or modification of charges within the timelines as provided, i.e. a total of 120 days of the creation or modification of charge. In case, the company fails to register the charge within the period of thirty days referred to in sub-section (1) of section 77, the charge holder may file the form related to creation or modification of charges under section 78 of the Act, within the overall timelines for filing of such form under section 77.

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