9354924722 9121230280

Learning

Professional Advisory Services

Soumya Bajpai
| Updated: 22 May, 2020 | Category: PSARA

PSARA License: Renewal and Penalties

PSARA license renewal

PSARA License is necessarily required before any person starts a private security business in India. The Private Security Agency means an entity that involves in the business of providing Security Guards and other related services as an alternative to the police. The operation of the private security agencies are governed by the Private Security Agencies Regulation Act, 2005, popularly known as PSARA.

Private Security Agency Meaning

Private Security Agency means a person or body of persons other than a Government Agency, Department or Organisation engaged in the business of providing private security services. It includes training to private security guards or their supervisor or providing private security guards to any industrial or business undertaking or a company or any other person or property.

After the enactment of the PSARA (Act), it is mandatory for a security agency to obtain PSARA license from the concerned State Controlling Authority prior to commencing the business and in case of non-compliance, the law provides for stringent penal consequences. The application for a license to start a private security agency[1] is made to the competent authority. The PSARA License is issued to operate in one or more district of a particular state or for the entire State.

Grant of PSARA License

An application for grant of license to a private security agency must be made to the Controlling Authority in such form as may be prescribed

  1. The applicant shall submit an affidavit with the details in relation to the provisions contained in section 6 also ensures the availability of the training for its private security guards and supervisors required under sub-section (2) of section 9. The conditions mentioned under section 11 must also be fulfilled and it is also checked that no cases registered with police or pending in a court of law involving the applicant.
  2. Every application made under sub-section (1) must be accompanied by a fee of—
  • Rs 5000, if the private security agency is operating in one district of a State;
  • Rs 10000, if the Agency is operating in more than one but up to five districts of a State; and
  • Rs 25000 if it is operating in the whole State.

3. On receiving an application under sub-section (1), the Controlling Authority may, after making such inquiries as it considers necessary and then obtains a no-objection certificate from the concerned police authority. The Authority will order in writing, either grant a license or refuse to grant the same within a period of sixty days from the date of receipt of application with complete particulars and the prescribed fee. Provided that no refusal order must be made unless—

  • The applicant has been given a reasonable opportunity of being heard
  • The grounds on which license is refused are mentioned in the order

4. A license granted under this section—

  • It must be valid for a period of five years unless the same is cancelled under sub-section (1) of section 13
  •  It had to be renewed from time to time after the expiry of five years, for a further period of five years on payment of such fee as may be prescribed
  • It must be subject to such conditions as may be prescribed.

Procedure for Grant of PSARA License in Delhi

  • The Controlling Authority, after receiving a report from the authorized officer on the application received under sub-rule (1) of rule 3, shall grant a license to the private security agency in Form VI. It is important that Authority must complete all the formalities and satisfy itself about the suitability of the applicant. The area of operation must be checked for which the license has been granted.
  • The Controlling Authority either by itself or through its officers, including the officer authorized by it, has to verify the training and skills imparted to the private security guards and supervisors of any private security agency.
  • The Controlling Authority also has to review the continuation of a license of such security agencies, which may not have adhered to the conditions of ensuring the required training.
  • The Controlling Authority may make such inquiries as it considers necessary and then obtaining a no-objection certificate from the concerned police authority. The Authority must order in writing, to grant or refuse to grant the same within a period of sixty days from the date of receipt of application and the fees.
  • In case the Controlling Authority does not agree with the no-objection certificate from the concerned police authority, he has to briefly record the reasons for his disagreement and place the matter before the Government and then proceed to grant or refuse to grant the license as per the decision of the Government.
  • If the Controlling Authority decided to grant a license, it should be in Form VI. The license must be valid for a period of 5 years unless the same is cancelled by the Controlling Authority.
  • The Controlling Authority must not refuse to grant the license unless the applicant has been given a reasonable opportunity of being heard. The grounds on which license is refused must be mentioned in the order.
  • The Agency can not use in its name the words like “Indian,” “National,” or any other such words, which give the impression of any Government patronage.

Read our article:PSARA License – Know it’s Eligibility Criteria and Documents Required

Conditions for Grant of PSARA License in Delhi

  • The Licensee must successfully undergo the training related to the private security service as prescribed by the Controlling Authority within the time frame fixed by it.
  • The Licensee has to disclose the name, parentage, date of birth, permanent address, and address for correspondence and the principle profession of each person forming the Agency within fifteen days of receipt of the license from the Controlling Authority.
  • The Licensee must inform the Controlling Authority regarding any change in the address of persons forming the Agency, change of management within seven days of such change.
  • The Licensee must immediately intimate the Controlling Authority about any criminal charge framed against the persons forming the Agency or against the guard or supervisor engaged or employed by the Agency. A copy of such communication must also be sent to the officer in charge of the police station where the charge framed person resides.
  • Every Licensee must abide by the requirements of physical standards for the private security guards and their training as prescribed in these rules as the condition on which the license is granted.
  • Save as provided in these rules, the fees paid for the Grant of License must be non-refundable.
PASARA License Fee

PSARA License Renewal

  • An application for PSARA license renewal must be made to the Controlling Authority, not less than forty-five days before the date of expiry of the period of validity thereof. It is made in the form as may be prescribed and shall be accompanied by the requisite fee and other documents required under sections 6, 7, and 11 of this Act.
  • The Controlling Authority will pass an order on the application for PSARA license renewal within thirty days from the date of receipt of application complete in all respects.
  • On receipt of an application under sub-section (1), the Controlling Authority will make such inquiries as he considers necessary and then by order in writing, renew the license or refuse to renew the same. Provided that no such order of refusal must be made except after giving the applicant a reasonable opportunity of being heard.

Conditions for PSARA License Renewal in Delhi

The PSARA license renewal shall be granted subject to the following conditions:-

  • Every Agency shall apply to the Controlling Authority for renewal of the license not less than 90 days (including 45 days) before the date of expiry of the period of validity thereof
  • The Controlling Authority can renew a license up to a further period of five years
  • The fees chargeable for renewal of the license shall be as applicable for the grant of license
  • The applicant continues to maintain his principal place of business in the jurisdiction of the Controlling Authority
  • The applicant continues to ensure the availability of the training for its guards and supervisors required under sub-section (2) of section 9 of the Act and Rule 6 of these rules
  • The applicant continues to adhere to the license conditions
  • The police have no objection to the PSARA license renewal of to the applicant
NOTE: The form for application of renewal of the license will be the same as the form for the application for original license.

Punishment for not having Valid License

Any person who does not hold a valid License under PSARA must be Punishable with Imprisonment for a term which may extend to one year, or with fine which may extend to Twenty-Five Thousand Rupees, or with both. All the private Security agencies must obtain a license under PSARA 2005 to operate his business all over India. Private Security Agency License (PSARA) is mandatory for all running Private security Agencies.

Penalty for unauthorized use of Certain Uniforms

If any private security guard or supervisor wears the uniform of the Army, Air force, Navy or any other armed forces of the Union or Police or any dress having the appearance or bearing any of the instinctive marks of that uniform then he and the proprietor of the private security agency must be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees, or with both.

PSARA License Cancellation and Suspension in Delhi

  • No license granted under this Act must be cancelled or suspended until the holder of a license has been given a reasonable opportunity of showing cause and being heard after giving due service of notice, why his license should not be cancelled or suspended.
  • No such opportunity for showing cause and being heard will be necessary when the license is suspended temporarily pending an inquiry against the holder of the license for contravention of any of the grounds as mentioned in section 13(1) of the Act or any order made there under or of any of the conditions of the license granted to him.

Disqualification of License

The application may get rejected under the following-

  • If the government feels that it is unfit for the betterment of the general public
  • The person forming the company should not be convicted with the crime whose punishment is imprisonment, not less than two years
  • If the applicant is keeping links with any organization which is banned by the government
  • On the grounds of misconduct
  • Association or firm not registered in India or has a shareholder, partner or director who is not a citizen of India, will not be considered for the issuance of the license under the PSARA

Conclusion

Nowadays, the growing tendency of hiring security guards from private sources has led to the form of a large number of private security agencies. These private security agencies help meeting the security requirements of the private sector; on the other hand, there is a concern about how this Agency works.  These private security agencies should obtain PSARA licenses for their smooth functioning, and the Licensee should commence operation within six months of obtaining the license.

Read our article:Who cannot apply for PSARA License? Eligibility Criteria

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
Soumya Bajpai

Soumya has done LLB (Hons) and has a 2+years experience in writing. Her main interest is in reading judgments, new enactments and amendments taking around in law. She always strives to bring the best to work that she does.

Professional Advisory Services
Soumya Bajpai
Soumya Bajpai | Date: 02 Jun, 2020

Punishment under PSARA Act for...

With the traditional policing and national security agencies serving the law and order function, there is an increa...

Continue Reading
Soumya Bajpai
Soumya Bajpai | Date: 25 May, 2020

Private Security Agency cannot...

Private Security Agencies are those agencies that provide security services including training of security guards....

Continue Reading

Request a Call Back

Are you human? : 5 + 7 =

Transform your Business. Subscribe our Newsletter.