Companies Act, 2013: Covid Relaxations 2.0

Relaxation on levy of additional fees in filing of certain Forms on MCA21 portal

In view of the Covid-19 related restrictions and disruption, MCA has granted the additional time for filing of various forms (other than charge related forms) under the Companies Act and LLP Act due for filing during 01st April, 2021 to 31st May, 2021 up to 31st July, 2021 without any additional fees.

However, the changes required in the MCA-21 System to implement this decision are being made and MCA would inform the stakeholders in this regard in due course through a Notice on MCA portal. Therefore, the stakeholders may plan accordingly.

Important FAQs:

1) What is the applicability of the Circular?

The Circular is applicable in respect of filing of Forms CHG-1 and CHG-9 by a company or a charge holder:

  1. a) Where the date of creation/ modification of charge is before 01st April, 2021, but the timeline for filing such form had not expired (i.e. 120 days) as on 01st April, 2021; or
  2. b) Where the date of creation/ modification of charge falls on any date between 01st April, 2021 to 31st May, 2021 (both dates inclusive).
2) Whether Form CHG-4 for satisfaction of charge can be filed under the Scheme?

No.

3) Whether the Form CHG-1 or CHG-9 can be filed if the timeline (i.e. 120 days) for filing such forms had expired prior to 01st April, 2021?

No.

4) What if Form CHG-1 or CHG-9 has already been filed before the date of Circular (i.e. 03rd May, 2021) by paying additional fees?

The Circular is not available for such forms and no refund can be claimed.

5) What is the relaxation in timeline and applicable fees under the Circular?

Relaxation of time: The period beginning from 01st April, 2021 and ending on 31st May, 2021 shall not be reckoned for the purpose of counting the number of 120 days. In case, the form is not filed between 01st April, 2021 and 31st May, 2021 the first day after 31st March, 2021 shall be reckoned as 01st June, 2021 for the purpose of counting the number of days within which the form is required to be filed.

Applicable Fees: If the form is filed on or before 31st May, 2021, the fees payable as on 31st March, 2021 under the Fees Rules for the said form shall be payable. If the form is filed thereafter, the applicable fees shall be payable as per the Fees Rules after adding the number of days beginning from 01st June, 2021 and ending on the date of filing plus the time period lapsed from the date of the creation of charge till 31st March, 2021.

6) Is the Circular has been implemented on MCA Portal?

The changes required in the MCA-21 System to implement this decision are being made and MCA would inform the stakeholders in this regard in due course through a Notice on MCA portal. Therefore, the stakeholders may plan accordingly

Relaxation in interval between Board Meetings

In view of the difficulties arising due to resurgence of Covid-19, MCA has extended the maximum interval of Board meetings to be held in the first two quarters of Financial Year 2021-22 (i.e. Quarters April to June 2021 and July to September 2021) from 120 days to 180 days.

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