{"id":10286,"date":"2020-06-06T16:08:32","date_gmt":"2020-06-06T10:38:32","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=10286"},"modified":"2022-09-09T15:29:25","modified_gmt":"2022-09-09T09:59:25","slug":"cancellation-of-psara-license","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/","title":{"rendered":"Suspension and Cancellation of PSARA license: Overall legal Position"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In the wake of this new economic reality and to ensure that the government resources are focused towards better delivery towards internal security, private security agencies can serve as viable alternative perform to traditional police performing non-critical security functions. <a href=\"https:\/\/corpbiz.io\/psara-license\"><strong>PSARA License<\/strong><\/a> is necessarily required by any person before starting a private security business in India. However, the license can be <strong><em>cancelled or suspended by the authority on violating the norms<\/em><\/strong> of the provisions of the PSARA Act or on non-compliance of the conditions as specified. This article is to focus upon cancellation of PSARA license.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Importance_of_holding_PSARA_License\" >Importance of holding PSARA License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Suspension_and_Cancellation_of_PSARA_license\" >Suspension and Cancellation of PSARA license<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Conditions_for_Suspension_and_Cancellation_of_PSARA_license\" >Conditions for Suspension and Cancellation of PSARA license<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Appeals_made_on_Suspension_and_Cancellation_of_PSARA_License\" >Appeals made on Suspension and Cancellation of PSARA License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#PSARA_Licenses_for_National_Security\" >PSARA Licenses for National Security<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Guidelines_followed_to_avoid_cancellation_of_PSARA_License\" >Guidelines followed to avoid cancellation of PSARA License<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/cancellation-of-psara-license\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_holding_PSARA_License\"><\/span>Importance of holding PSARA License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A Private Security Agency Services (PSA) provides the\nservices of armed and unarmed security guards for the protection. These\nagencies helps in security to the world by providing services like patrol\nservices, bodyguard, guard dog, parking security etc. Private security agencies\ncan provide security services to private and government companies, restaurant,\nguesthouses and hotels, housing societies, private bungalows etc. All the PSAs\nare registered and regulated under <strong>Private\nSecurity Regulation Act, 2005 (PASARA). <\/strong><\/p>\n\n\n\n<p>The Private Security Agencies not only provide security services but also provides the training to security guards. However, <strong><em>Section 4 of the Act<\/em><\/strong> clearly states that no person will carry on or commence the business unless he holds a license issued under this PSARA act to have private security agency.Therefore, it is important to have PSARA license to run a private security agency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Suspension_and_Cancellation_of_PSARA_license\"><\/span>Suspension and Cancellation of PSARA license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1.<\/strong> <strong><em>Under Section 13 (1),<\/em><\/strong> the Controlling Authority has an authority to do <strong>cancellation <\/strong>of PSARAlicense, on any one or more of the following grounds which are:<\/p>\n\n\n\n<ul><li>In case that the license has been obtained by way of<strong><em>misrepresentation or suppression of material facts<\/em><\/strong><\/li><li>If the license holder has <strong><em>used false documents<\/em><\/strong> or photographs for the license<\/li><li>If the license holder has violated any of the provisions given under this Act or the rules made thereunder. Also if he has <strong><em>breachedany of the conditions<\/em><\/strong> of the license<\/li><li>In case if the license holder has <strong><em>misused information<\/em><\/strong>that has been obtained by him during the discharge of hisduties, as the private security agency to any industrial or business undertaking or a company or anyother person.<\/li><li>If the license holder by using any letter-head, advertisement or any other printed matter for <strong><em>illegal use<\/em><\/strong>. Also if he <strong><em>frauds<\/em><\/strong>in any other manner by representing that the private security agency is an instrumentality of theGovernment or has been using a name different from that for which license hasbeen granted<\/li><li>If the license holder has been <strong><em>impersonating<\/em><\/strong> or permitting or <strong><em>aiding or abetting<\/em><\/strong> anybody to impersonate as a public servant<\/li><li>If the license holder has willfully <strong><em>failed or refused <\/em><\/strong>to render the services agreed to any person<\/li><li>If the license holder has done any act which is in <strong><em>violation of a court order<\/em><\/strong> or an order of alawful authority. Also if he has been advising, encouraging or assisting any person to violate any suchpublic order<\/li><li>If the license holder has been <strong><em>violated the provisions<\/em><\/strong> of the Acts given in the Schedule which maybe modified by the Central Government, by notification in the Official Gazette<\/li><li>If the license holder has done any act which poses a <strong><em>threat to national security<\/em><\/strong>, or did not provide assistance to the police or other authority in the discharge of its duties or acted in a manner prejudicial to national security or public order or law and order.<\/li><li>In case the private security agency had <strong><em>failed to commence its activities<\/em><\/strong> or to engage a supervisor within the specified time period<\/li><li>In case there have been repeated instances when the private security guard or guards provided bythe private security agency are failed to act as follows:<\/li><\/ul>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-39.png\" alt=\"PSARA license\" class=\"wp-image-10287\" width=\"596\" height=\"325\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-39.png 649w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-39-300x164.png 300w\" sizes=\"(max-width: 596px) 100vw, 596px\" \/><\/figure><\/div>\n\n\n\n<p><strong>2. <\/strong>The Controlling Authority can order for <strong><em>cancellation<\/em><\/strong> of PSARA license after recording the reasons in writing. The authority has to satisfy that pending the question of cancellation of PSARA license has been made on of the grounds provided in <strong><em>sub-section (1)<\/em><\/strong>. When it is necessary to do so, the Controlling Authority can, by making order in writing, can also suspend the operation of the license for the period of not exceeding thirty days as may be specified in the order. The license holder requires showing cause within fifteen days from the date of issue of suspension order, as to why the suspension of the license should not be extended till the determination of the question of cancellation.<\/p>\n\n\n\n<p><strong>3. <\/strong>Every order of suspending or cancelling of a license must be <strong><em>in writing and must specify the reasons<\/em><\/strong> for such suspension or cancellation of PSARA license. The copy of such must be communicated to the affected person.<\/p>\n\n\n\n<p><strong>4. <\/strong>No order of cancellation of PSARA licensemust beunder sub-section (1) unless the concerned personhas been given a <strong><em>reasonable opportunity of being heard.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conditions_for_Suspension_and_Cancellation_of_PSARA_license\"><\/span>Conditions for Suspension and Cancellation of PSARA license<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The two conditions\nmust be compulsory fulfilled up on the cancellation of PSARA License.<\/strong><\/p>\n\n\n\n<p><strong>Those are as\nfollows:-<\/strong><\/p>\n\n\n\n<ul><li>The license granted under this Act must not be cancelled or suspended unless the holder of a PSARA license has been given a reasonable opportunity of being heard. He can show cause after giving due service of notice, why his license must not be cancelled or suspended.<\/li><li>The opportunity for showing cause and of being heard must not be given when the license is suspended temporarily pending for an enquiry against the holder of the license for contravention of any of the grounds as mentioned in <strong>section 13(1)<\/strong> of the Act or of any of the conditions of the license granted to him.<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/punishment-under-psara-act-for-private-security-agencies\/\">\nPunishment under PSARA Act for Private Security Agencies\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Appeals_made_on_Suspension_and_Cancellation_of_PSARA_License\"><\/span>Appeals made on Suspension and Cancellation of PSARA License<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Any person who is aggrieved by an order of the Controlling Authority for the suspension of license under <strong>sub-section (2) of section 13<\/strong>, or cancellation of license under <strong>sub-section (1) of the section 13<\/strong> has the two remedies.<\/li><\/ul>\n\n\n\n<p><strong>Those are as follows:-<\/strong><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-40.png\" alt=\"PSARA License\" class=\"wp-image-10288\" width=\"590\" height=\"420\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-40.png 684w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-40-300x214.png 300w\" sizes=\"(max-width: 590px) 100vw, 590px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Every appeal when under <strong><em>sub-section (1)<\/em><\/strong> must be made in such form as may be prescribed and also be accompanied with a copy of the order against which appeal is made.<\/li><li>Before disposing of an appeal, the State Government has to give the appellant a reasonable opportunity of being heard.<\/li><\/ul>\n\n\n\n<div class=\"shadow1\"><strong>Note:<\/strong> Every appeal under sub-section (1) of Section 14 of the Act must be made in preferred Form- VII. It must be signed by the aggrieved person or by his authorized advocate and presented to the Appellate Authority in person or sent to him by registered post.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"PSARA_Licenses_for_National_Security\"><\/span>PSARA Licenses for National Security <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The central government has provided <strong>some exemptions<\/strong> to certain clauses of the Arms Act to enable <strong><em>companies, banks, industrial or other establishments to obtain licenses<\/em><\/strong> in the name of legal entity rather than obtain in the name of individuals. Technically, bank managers, bank branches do obtain weapons in the name of bank branch and then issue it on retainer ship basis to retired ex-servicemen to hold the arms to protect the bank premises. <\/li><\/ul>\n\n\n\n<ul><li>Such exemptions can expressly include certain categories of PSAs holding licenses for armed guard services to enable private security agencies to obtain arms in requisite numbers and then deliver the service. PSARA License is necessarily required to run the business of private security agency.<\/li><\/ul>\n\n\n\n<ul><li>Such regulatory issues adversely stunt the ability of the industry to organize itself in a professional manner and raise service-delivery as well as compliance standards. Therefore, it is critical that a single licensing system is created. Such a system can be a combination of <strong><em>central\/state level registration<\/em><\/strong>, depending factors such as the size, scale\/area of operations, employment conditions\/terms, past experience and the like for the PSA. <\/li><\/ul>\n\n\n\n<ul><li>The Act, under the registration regulations, can specify the segregate categories of PSAs that can provide services throughout India on the basis of Central Registration and other PSAs that can obtain state-level registration. The actual enforcement of the Act can also be segregated between central\/state-level authorities accordingly. <\/li><\/ul>\n\n\n\n<ul><li>With a view to incentivize professional servicesand compliance, eligibility criterions can be defined to allow a state-level PSA to obtain a national license.As a result of <strong><em>uniform licensing\/registration<\/em><\/strong>, there can also be a homogenous set of rules\/conditions of operation that can be made applicable. This would not only reduce enforcement time but also allow for national level integration to effectively monitor and plan for the private security industry.<\/li><\/ul>\n\n\n\n<ul><li>Eliminate heterogeneous requirements under the Act and several state statutes governing PSAs by establishing a single licensing framework under the Act. <strong><em>Classification of PSAs<\/em><\/strong> requiring state license must be according to variety of <strong><em>factors such as size, operations, and employment conditions<\/em><\/strong>. Provide for a graded licensing system, thereby encouraging professional services and compliance-driven operations.<\/li><\/ul>\n\n\n\n<ul><li>It is required to create an expert panel, with MHA<sup><a href=\"https:\/\/www.mha.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup>, State Governments and PSAs as members, to any new rules\/regulations\/compliance requirements. Uniform licensing timelines and requirements as well as other compliance parameters order to enable efficient implementation and enforcement\/oversight.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Guidelines_followed_to_avoid_cancellation_of_PSARA_License\"><\/span>Guidelines followed to avoid cancellation of PSARA License <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is required by MHA, in coordination with State\nGovernments, conducts a holistic review and grading of security\nestablishments\/duties thereunder. After due consultation with all government\nand industry factions\/participants, categories from non-critical to very\ncritical to be devised and security establishments\/duties therein classified\naccordingly.<\/p>\n\n\n\n<ul><li>Devise a framework for adopting PSAs <strong><em>to\nperform non-critical duties<\/em><\/strong> allowing police and other security forces\nto focus on internal security for citizens.<\/li><li>Wherever it is required, empower the PSAs <strong><em>to\nconduct quasi-internal security functions<\/em><\/strong> in order to fully assist the\npolice forces, for example right to detain, submit report, fire non-lethal ammunition.<\/li><li>It is also to allow for licenses to PSAs <strong><em>to\nconduct services beyond traditional security <\/em><\/strong>manning, including armed\nguard services.<\/li><li>Appropriate notification to be issued under Arms\nAct to allow PSAs <strong><em>licensed to provide armed guard services<\/em><\/strong> to procure and store\narms. Develop compliance and audit requirements under the Act for armed guard\nservice licenses to PSAs.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>However, the state governments monitor the work of the PSA in general. The <strong>cancellation<\/strong> of PSARA license can be made by the authority on violating the norms and guidelines as specified in the PSARA Act or modify by the government from time to time.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/psara-license-renewal-and-penalties\/\">PSARA License: Renewal and Penalties\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the wake of this new economic reality and to ensure that the government resources are focused towards better delivery towards internal security, private security agencies can serve as viable alternative perform to traditional police performing non-critical security functions. PSARA License is necessarily required by any person before starting a private security business in India. [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":10293,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[181],"tags":[638],"acf":{"service_id":"249"},"authorName":"Soumya Bajpai","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/01\/0.jpg","authorDescription":"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.","postViews":9968,"readingTime":6,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10286"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=10286"}],"version-history":[{"count":17,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10286\/revisions"}],"predecessor-version":[{"id":48559,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/10286\/revisions\/48559"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/10293"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=10286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=10286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=10286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}