CHENNAI: Three years after the state government announced that it would end the repeated registration of the Memorandum of Deposit of Title Deed (MoDT), a section of MSME entrepreneurs has urged the state to issue the necessary G.O. to implement the decision.
MSME entrepreneurs told TNIE the delay has forced thousands of MSMEs to continue paying registration and stamp duty every time they renew MoDT, even when there is no change in the lending bank, loan amount or the property offered as security.
Under the present system, MSMEs creating an equitable mortgage to obtain bank loans must register MoDT. Entrepreneurs said borrowers are charged 0.6% of the loan amount for loans up to `80 lakh, while loans above `80 lakh attract a flat fee of `48,000. They have urged the government to introduce two or three slabs and cap the maximum charge at Rs 25,000.
Tamil Nadu Small and Tiny Industries Association (TANSTIA) president S Vasudevan told TNIE the association has repeatedly raised the issue with the government since the announcement made during the ‘Thol Koduppom Thozhilukku’ MSME conference in Madurai in September 2022.
He said TANSTIA had also sought clarification from RBI, which informed the association it has not prescribed annual renewal of MoDT. The association has now submitted another representation to the state registration minister seeking immediate implementation of the announcement.