Registration fee on an agreement for mortgaging assets

Rupendra Porwal (Querist) 23 May 2015 This query is : Resolved
We have availed loan of Rs. 10 Cr from consortium of banks and provided security of appx 10 cr( not registered).

Now Lead bank has demanded additional security of 5 cr and agreement/deed assigning rights shall be registered ( as desired by bank) with Registrar of assurance/Dy. Registrar in New Delhi.

Now registrar has demanded registration fee of 10 lakh on agreement/deed being 1% of registration fee on TOTAL LOAN AMOUNT.

We have no problem in paying registration fee of 5 Lakh for registering present agreement/deed assigning assets worth 5 cr.

PLEASE SUGGEST, HWO THIS MATTER SHOULD BE TAKEN UP?

ALSO SUGGEST ANY OTHER MODE, WHEREIN WE CAN SAVE ADDITIONAL REGISTRATION FEE OF 5 LAKH

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kavksatyanarayana (Expert) 23 May 2015
@author, as the first document is not registered, and in the 2nd document the parties (you and the bank)have to mention the amounts of RS. 10 cr. and present loan of Rs.5 cr, a total of Rs.15 cr. you have to pay the regn fee on 15 cr.

malipeddi jaggarao (Expert) 24 May 2015
I agree with the expert advice of Mr.Satyanarayana. The additional property is to cover the entire loan/limit which is 10 crore, though you are giving additional security worth Rs.5 crore. Hence the REgistrar's contention is tenable. What does the Bank say?