Complex banking matter-ROC charge

nishad (Querist) 25 March 2010 This query is : Resolved
Dear All

A company has availed a ccol- 50 lacs,PC-20 Lscs, and FSL-50 Lacs.The charge was created on the immovable property of the company in ROC for 120 Lacs[aggregate of all facilities]
Subsequently, under instructions from HO, the exposure of the company was reduced to 80 Lacs.Thats is done by reducing CCOL limits to 20 Lacs and a fresh OD account was granted for 10 lacs.Now the aggregate limit is Rs.100 Lacs.There is no change in the security.Now my question is should we make modifications in the ROC as regarding the new facility ie: OD of RS.20 Lacs,though the overall exposure is less than the amount which was originally refistered with ROC.

Please advise at the earliest

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nishad (Querist) 25 March 2010
all other facilities ie:PC,FSL remains the same

A V Vishal (Expert) 25 March 2010
Yes in the best interest of the client it is advisable to modify the charge created for 120 lakhs.

nishad (Querist) 25 March 2010
thnaks Vishal..but there is no change in the security..it file modifications in ROC we need to have either mortgage documents or hypothecation.This being the case how do we modify the charge?

nishad (Querist) 26 March 2010
Nirav thanks..but will ROC accept form 8 without any charge creating documents..there is only modifactions in the facilities..please advise