File Charge with CERSAI for Movable & Intangible Assets also

Charge on stocks & book debts machinery is also required to be filed with CERSAI. CERSAI, vide their notification dated 18/05/2016 has made it mandatory to file/ satisfy security transactions secured movables, intangibles and immovable other than equitable mortgage. Earlier security interest by way of mortgage of Immovable Properties were required to be filed with CERSAI. It implies that now apart from mortgage of IP even charge on stocks, book debts and machinery etc. shall be required to be registered with CERSAI.

As per CERSAI Circular following types of Security interest are also required to be filed on the CERSAI portal:

1. Particulars of creation, modification or satisfaction of security interest in immovable property by mortgage other than mortgage by deposit of title deeds (equitable mortgage) shall be filled in Form I and Form II, as the case may be and shall be authenticated by a person specified in the Form for such purpose by use of valid digital signature.
2. Particulars of creation, modification or satisfaction of security interest in hypothecation of plant and machinery, stocks, debt including book debt or receivables, whether existing or future shall be filled in Form I or Form II , as the case may be, and shall be authenticated by a person specified in the Form for such purpose by use of valid digital signature.
3. Particulars of creation, modification or satisfaction of security interest in intangible assets being knowhow, patent, copyright, trade mark, license, franchise or any other business or commercial right of similar nature, shall be filed in Form I or Form II, as the case may be, and shall be authenticated by a person specified in form for such purpose by use of valid signature.

 

CERSAI vide circular dated 13.06.2016 directed that first registration of records pertaining to immovable property by mortgage (other than mortgage by deposit of title deeds), movable and intangible assets will start w.e.f. 01.07.2016.

Batch upload facility has been given by CERSAI for uploading data. Templates for batch uploading can be downloaded from here.

To start with security interest created on or after 22.01.2016 are required to be filed with CERSAI.

No penalty is to be imposed for delay in filing/ modifying charge for the time being, however, for delay beyond 60 days, condonation from Central Government is required.