Private security companies in India operates under the ambit of the Private Security Agencies (Regulation) Act, 2005. This Act outlines brief guidelines for companies willing to make their mark in the private security business. From registration prerequisites to code of conduct, PSARA Act covers almost every dimension that affects a company’s working in one way or another. It acts as a legal framework for companies. At present, a company without PSARA registration is just like an illegal entity. It is almost impractical for private security firms to operate without this license. PSARA registration is an absolute mandate for those who wish to set up private security in India. In this write-up, we shall cover different aspects of this Act, including Register to be maintained by a private security agency. This way, you can easily understand the legality associate with the PSARA license.
What is the legal definition of a private security firm?
According to PSARA Act, 2005, a private security firm refers to a person other than a government agency, firm or department involved with the business of private security services, including training to guards or their manager or providing private security guards to any business undertaking or a firm or any person or property.
Type of Person who cannot carry out private security business in India
The following individual stands non-eligible to obtain the PSARA license as per the PSARA Act.
The person involved in crime in connection with the formation, promotion or management of a firm (any fraud committed by him/her in connection to the firm, including an undischarged insolvent
A person has been tagged as criminal by a competent court that attracts imprisonment of not less than 2 years, or Keeping links with any company which stands illicit as per the law and pose a threat to national security;
A person dismissed or discarded from the Government service due to misconduct or moral turpitude.
A company or an association of persons shall not stand eligible for a license if it is not registered or has a proprietor or a majority shareholder, not India’s citizen.
Register to be maintained by a private security agency as per PSARA Act
Every private security agency is mandated to maintain a register enclosing;
The regulatory authority might call for such information as it deems compulsory from any private security firm, supervisor, and guard to ensure conformity with the Act.
Conditions for cancellation & suspension of license
The Controlling Authority is vested with rights to cancel any license on the following grounds;
- The person has used falsified facts for the obtainment of the license;
- The license holder has leveraged fabricated document or photos;
- The license holder has breached the provisions under the Act or any norms of the licence;
- The license holder has used malicious intention to leverage any information obtained during the discharge of the duties to any business undertaking or any other person;
- The license holder has leveraged any advertising medium, letterhead, or any other printer matter for misrepresentation of the company or using a different name which is breaching license conditions;
- The license holder is wrongly projecting its firm as a public servant or impersonating or abetting anybody;
- The private security agency had breached the conditions related to time for commencement of activities or appointing the supervisor;
- The licence holder has manifested any kind of misconduct on account of service rendering to any client;
- the license holder has found guilty of breaching a court order or has been encouraging anyone to do the same;
- The license holder has contravened the provisions under the Act given in the schedule, which the Central Government may alter via notification in the official gazette;
- There have been recurring instances of failure of private security guard to ethically discharge the duties owing to chronic drinking, illicit conduct, and malicious intentions.
- The licence holder act is against the interest of concerned authorities, and the nation or he has acted in a manner that seems detrimental to national security.
The above grounds are sufficient to compel Controlling Authority to take disciplinary action against the defaulter. Once the reason for non-compliance is identified, the authority shall render the suspension order in writing for a maximum of 30 days. The license holder can use their rights of being heard and put up the case before the authority within fifteen days from the release of the order.
The spontaneous rejection or suspension is not possible as per PSARA Act,2005. The affected person will get an equal opportunity to put up the case before the authority to save their licence.
Through its designated officer, the Controlling Authority can conduct a surprise visit of the premises of the private security firm and examine the relevant parameter such as place of business of documents to determine whether everything is in compliance or not. For reference, such an individual may take some important form for further examination. Therefore, it is essential to take due care of Register to be maintained by a private security agency.
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Read our article:Who cannot apply for PSARA License? Eligibility Criteria