Modify a Registered Charge explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To modify a registered charge, file e-Form CHG-1 with the Registrar within 30 days of the modification under Section 79, attaching the modification instrument. The same extended-fee windows as creation apply (up to 120 days for recent charges). On approval, a CHG-3 certificate of modification is issued.
Overview
A charge already on the Registrar's records often changes over the life of a loan — the sanctioned amount is enhanced, the security is expanded or reduced, the interest terms change, or the charge is assigned to a new lender. Each such change is a "modification" that must be registered, and it uses the same CHG-1 form as creation.
When It Is Required & Legal Basis
Section 79 of the Companies Act, 2013 provides that the provisions of Section 77 relating to registration of charges apply to modification of a charge in the terms, conditions or extent of the charge. Rule 6 of the Companies (Registration of Charges) Rules, 2014 requires the modification to be filed in CHG-1 within the prescribed time.
Step-by-Step Process
- Execute modification. The company and charge-holder execute the supplementary/modification deed.
- Identify the change. Determine what changed — amount, assets, interest, or charge-holder (assignment).
- Prepare CHG-1. Fill CHG-1 selecting "modification", referencing the existing charge ID.
- Attach documents. Attach the modification instrument and supporting papers.
- Sign and certify. Obtain signatures of company and charge-holder and professional certification.
- File and update. File within 30 days, obtain the CHG-3 certificate and update the register of charges (CHG-7).
Forms, Attachments & Fees
| Form / Item | Purpose | Timeline / Fee |
|---|---|---|
| CHG-1 (modification) | Register change in charge terms | Within 30 days of modification |
| CHG-1 (extended) | Delayed filing 31–120 days | Additional / ad valorem fees |
| Modification deed | Supplementary charge instrument | Mandatory attachment |
| CHG-3 | Certificate of modification issued | On approval |
Timeline & Due Dates
The 30-day clock runs from the date of modification. As with creation, charges modified on or after 2 November 2018 may be filed within a further 60 days on additional fees, then another 60 days on ad valorem fees — an outer limit of 120 days. Beyond that, condonation is required.
Penalty for Delay / Non-compliance
Late filing incurs escalating additional/ad valorem fees, and continued default attracts penalty on the company and officers under Section 86. An unregistered modification can leave the enhanced or altered security unenforceable against a liquidator or creditor, defeating the very purpose of the change.
Practical Tips
- Treat every loan enhancement or re-assignment as a modification — don't assume the original filing suffices.
- Quote the correct existing charge ID in CHG-1 so the modification links to the right charge.
- File within 30 days; the same steep late-fee slabs as creation apply.
- Keep the register of charges (CHG-7) synchronised with every modification.