Charges and Secured Loans for Telangana Companies: Mortgages, Stamp Duty and ROC Hyderabad

Registering a charge with the ROC works the same way across India. But when a Telangana company borrows against its property, a second set of state-level steps comes into play: stamp duty on the mortgage documents, registration with the Sub-Registrar, and in some cases permission from an industrial authority. This guide covers both sides for a company based in Telangana.

ROC Hyderabad

Charges created by companies registered in Telangana are registered with the Registrar of Companies, Hyderabad, through Form CHG-1 on the MCA portal, within 30 days of creation. Satisfaction is recorded in CHG-4 within 30 days of repayment. The index of charges on the MCA portal is what lenders in Hyderabad, and anywhere else, check before lending.

Mortgaging Property in Telangana

Most secured loans to Telangana companies involve property: a factory, office, warehouse or land. How the mortgage is created affects the stamp duty and registration requirements.

Registered mortgage

A mortgage deed is executed and registered with the Sub-Registrar's office for the area where the property is located, under the Telangana Registration and Stamps Department. Stamp duty and registration fees are payable at Telangana's rates.

Equitable mortgage by deposit of title deeds

Many banks instead take an equitable mortgage, where the company deposits the original title deeds with the bank as security. It's usually recorded in a memorandum of deposit of title deeds, which attracts stamp duty under Telangana's stamp law. Whether any further registration is needed depends on how the memorandum is drafted, so it's worth confirming with the bank's lawyer.

Either way, the charge must also be registered with the ROC in CHG-1. The Sub-Registrar registration and the ROC registration are separate, and one doesn't replace the other.

Encumbrance Certificates

Before lending against Telangana property, banks usually obtain an encumbrance certificate from the Registration and Stamps Department, which shows the registered transactions on the property. Alongside the MCA index of charges, it tells the lender whether the property is already mortgaged. A company planning to borrow can check both in advance to avoid surprises.

Industrial Land and TGIIC Plots

Companies whose factory sits on land allotted by a state agency, such as the Telangana State Industrial Infrastructure Corporation, should check the allotment terms before mortgaging it. Allotments commonly require the agency's permission or no-objection before the land can be mortgaged to a bank, and lenders will usually ask for it.

CERSAI

Banks and financial institutions also register their security interest with CERSAI, the Central Registry of Securitisation Asset Reconstruction and Security Interest of India. That's the lender's filing, but when the loan ends, the company should make sure it's released there as well as with the ROC.

When the Loan Is Repaid

1. Get the bank's no-dues certificate.
2. File CHG-4 with ROC Hyderabad within 30 days.
3. For a registered mortgage, have a release deed executed and registered with the Sub-Registrar.
4. For an equitable mortgage, collect the original title deeds from the bank.
5. Check the charge is released on CERSAI, and that a fresh encumbrance certificate reflects the release.

A Checklist for Telangana Companies

1. Register every charge with ROC Hyderabad within 30 days of creation.
2. Budget for Telangana stamp duty and registration fees on mortgage documents.
3. Get TGIIC (formerly TSIIC) or other agency permission before mortgaging allotted industrial land.
4. Check encumbrance certificates and the MCA index before a new loan.
5. On repayment, clear the charge with the ROC, the Sub-Registrar and CERSAI.

Getting Help

Think Filing registers, modifies and satisfies charges for companies in Telangana, coordinates with banks on the filings, and helps clear stale charges from both the MCA record and property records.