{"id":9962,"date":"2020-06-02T18:12:06","date_gmt":"2020-06-02T12:42:06","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=9962"},"modified":"2025-07-09T12:42:49","modified_gmt":"2025-07-09T07:12:49","slug":"punishment-under-psara-act-for-private-security-agencies","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/punishment-under-psara-act-for-private-security-agencies\/","title":{"rendered":"Punishment under PSARA Act for Private Security Agencies"},"content":{"rendered":"\n<p class=\"has-drop-cap\">With the traditional policing and national security agencies serving the law and order function, there is an increasing uptake of private security agencies for protection of establishment\/goods\/person. Industry today requires private security to perform functions more than mere guarding services. However on non compliance with the provisions, required punishment under PSARA act is provided.<\/p>\n\n\n\n<p>The Union Minister for Home Affairs had included private security forces as a viable alternative to state forces in his public address requesting state governments to conduct security assessment for <strong>nuclear and defense<\/strong> establishments, <strong>iconic structures,<\/strong> major <strong>religious shrines<\/strong> and key <strong>industrial establishments<\/strong> in the private, public as well as joint sector. However, in violation of public security, there are various punishments <strong>under PSARA act<\/strong> prescribed for the private security agencies.<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Punishment_for_contravention_of_certain_provisions_under_PSARA\" >Punishment for contravention of certain\nprovisions under PSARA<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Offenses_to_be_punishable_by_trial\" >Offenses to be punishable by trial<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Indemnity_Punishment_under_PSARA\" >Indemnity Punishment under PSARA<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Punishment_under_PSARA\" >Punishment under PSARA<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Graded_Penalty_System\" >Graded Penalty System<\/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\/punishment-under-psara-act-for-private-security-agencies\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Punishment_for_contravention_of_certain_provisions_under_PSARA\"><\/span>Punishment for contravention of certain\nprovisions under PSARA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Any person who contravenes the provisions of <strong>section 4<\/strong> shall be punishable with imprisonment for a term which may extend to <strong>one year<\/strong>, or with <strong>fine of not less than ten thousand rupees<\/strong> but which may <strong>extend to twenty-five thousand rupees<\/strong>, or with both.<\/li>\n\n\n\n<li>Any person or private security agency who contravenes the provisions of <strong>sections 8, 9, or 11<\/strong> of the Act, shall be punishable with a fine of not less than <strong>five thousand rupees<\/strong> but which may extend to <strong>twenty-five thousand rupees<\/strong>, in addition to suspension or cancellation of the <a href=\"https:\/\/corpbiz.io\/psara-license\"><strong>PSARA license<\/strong><\/a>.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"576\" height=\"385\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-12.png\" alt=\"Punishment under PSARA Act\" class=\"wp-image-9963\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-12.png 576w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-12-300x201.png 300w\" sizes=\"(max-width: 576px) 100vw, 576px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">Offenses by companies <\/h3>\n\n\n\n<ul>\n<li>When a punishment under PSARA Act is provided to a company, every person who at the time of commission of the offense was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company, must be deemed to be guilty of the offence and must be liable to be proceeded against and punished under the Act <\/li>\n\n\n\n<li>Provided that nothing contained in this sub-section must render any such person liable to any punishment under PSARA if he proves that the offense was <strong>committed without his knowledge<\/strong> or that he had exercised all <a href=\"https:\/\/corpbiz.io\/due-diligence\"><strong>due diligence<\/strong><\/a><strong> to prevent the commission<\/strong> of such offense. <\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Notwithstanding anything contained in sub-section (1), where any offense under the Act has been committed by a company and it is proved that the offense has been committed with the consent or involvement of, or is attributable to, any neglect on the part of any director, manager, secretary or other officers of the company, such director, manager, secretary or other officers shall be deemed to be guilty of that offense and must be liable to be proceeded against and punishment under PSARA is given accordingly. <\/li>\n<\/ul>\n\n\n\n<p><strong>Note: For the purposes of this section:-<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"608\" height=\"432\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-13.png\" alt=\"offenses by company under PSARA \" class=\"wp-image-9966\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-13.png 608w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/06\/image-13-300x213.png 300w\" sizes=\"(max-width: 608px) 100vw, 608px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Offenses_to_be_punishable_by_trial\"><\/span>Offenses to be punishable by trial<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Offences have punishment under PSARA Act must be tried by a<strong> Judicial Magistrate of the First Class<\/strong> having jurisdiction in the place where the offense is committed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Offenses to be cognizable<\/h3>\n\n\n\n<p>Every offence have punishment under PSARA Act must be cognizable within the meaning of the <strong>Code of Criminal Procedure<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Previous sanction of the Controlling Authority necessary in\ncertain cases<\/h3>\n\n\n\n<p>No prosecution must be instituted against any person in respect of offenses under sections 4, 8, 9, and 21, without the previous sanction of the Controlling Authority.<\/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\/\">\nPSARA License: Renewal and Penalties\n<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Indemnity_Punishment_under_PSARA\"><\/span>Indemnity Punishment under PSARA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No suit, prosecution or other\nlegal proceedings shall lie against the controlling authority or any other\nofficer authorized by it in respect of anything done or intended to be done in <strong>good faith<\/strong> under the Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Punishment_under_PSARA\"><\/span>Punishment under PSARA<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>With the passage of time, PSAs have evolved into\n<strong>corporate entities<\/strong> with operational\noffices in every state or specific site akin to manufacturing companies that\nwould own one or more production units\/factories in distinct states. As a\nnormal practice, such state-wise or project-wise units and their day to day\naffairs are managed by a manager\/person-in-charge who reports to the Chief\nExecutive Officer or the Board of Directors, as the case may be.<\/li>\n\n\n\n<li>The existing form of the Act and rules there\nunder hold the Directors directly responsible for any <strong>act\/omission<\/strong> on the part of a guard or guards while rendering\nprivate security services. In such scenarios, the concerned director\/CEO is also\nsummoned by the respective controlling authority.<\/li>\n\n\n\n<li>The above scenario presents a very difficult\nsituation, discouraging organized professionals\/corporate to enter in the\nprivate security sector. Although it is important to affix <strong>responsibility<\/strong> of the overall functioning of the PSA and its <strong>compliance<\/strong> with the license conditions\nto the <strong>directors\/CEO<\/strong>, the Act should\nfollow a graded approach by incorporating the <strong>\u2018occupier\u2019<\/strong> concept. <\/li>\n\n\n\n<li>Accepted in recent legislations dealing with\nindustries having pan India operations and facilities in various states, this\nconcept entails holding the person-in-charge of the facility as the first point\nof contact for the authorities and also the person primarily responsible for\ncompliance with the statute. <\/li>\n\n\n\n<li>Upon the <strong>failure\nof appointment<\/strong> of such person-in-charge (which may be mandated to be\nnotified to the authority concerned), the directors\/CEO would be held\nresponsible. Such a framework would not only inculcate better compliance ethos\nwithin the respective state\/site offices of the PSAs but also allow better\nenforcement for the regulatory authorities.<\/li>\n\n\n\n<li>Therefore, it is recommended that the Act and\nRules be amended to incorporate an &#8216;occupier&#8217; concept whereby the\nperson-in-charge of the PSA facility for a state\/project is primarily liable\nfor any violations and the directors\/CEO can be prosecuted upon failure to nominate\nsuch person-in-charge or on serious offenses\/violations.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Graded_Penalty_System\"><\/span>Graded Penalty System<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li>Consistent with the modern enforcement\npractices, it is recommended that the Act is amended to adopt a graded approach\nwhile prescribing penalties for offenses. The current framework of the Act and\nthe Rules do not allow enforcement agencies or PSAs to compound offenses and\nadopts an <strong>archaic\/old approach<\/strong> towards\npenalties. A compounding provision would allow regulators to be flexible in\ncase(s) of minuet, very technical, or first-time offenses.<\/li>\n\n\n\n<li>Additionally, provisions relating to issuance of\nimprovement notice and suspension of license for non-compliance may be\nincorporated to aid better enforcement. If any PSA does not adhere to the\ncompliance conditions specified within the improvement or suspension notice, as\nthe case may be, then the regulator may proceed to cancel\/revoke the license. <\/li>\n\n\n\n<li>It has been observed that providing for some\ntime-period to incur compliance enables efficient enforcement while <strong>avoiding time and cost-intensive litigation<\/strong>.\nAffording such clauses within the Act and the Rules would allow for the\nindustry to gear-up for<strong> true self-regulation\n<\/strong>and improvise on compliance pitfalls.<\/li>\n\n\n\n<li>It is recommended that the existing framework\nunder the Act is revised to hold the person-in-charge for operations in a\nparticular <strong>state\/project office<\/strong>\nprimarily responsible for any violations. All service\/process in connection\nwith such violations should also involve such person as the first point of contact.\n<\/li>\n\n\n\n<li>The board or CEO should only be summoned in <strong>cases of serious breaches or in the absence\nof any such person<\/strong>-in-charge being nominated by the PSA.&nbsp; The Act requires allowing for compounding of\noffenses, at the discretion of the regulator, for minuet, very technical, or\nfirst-time offenses.<\/li>\n\n\n\n<li>Provisions relating to <strong>issuance of improvement notice and suspension of license for non-compliance<\/strong>\nmay be incorporated to aid better enforcement. The regulator may proceed to\ncancel\/revoke the license if the PSA does not satisfy compliance even after the\nsaid notices.<\/li>\n<\/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>The deployment of converging security services, i.e. manned guarding along with technical equipment has an ever-increasing uptake. Advanced security assessment techniques and expertise gained by foreign security services would allow for provision of efficient services to the clients. It would also be imprudent to equate security services with sensitive sectors like defense or other critical sectors affecting the economy such as insurance\/banking\/financial services. In order to maintain adequate checks and balances, the Government can mandate prior-approval for investment beyond a certain threshold in PSAs.<\/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\/private-security-agency-license\/\">Private Security Agency cannot engage Guard without License\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>With the traditional policing and national security agencies serving the law and order function, there is an increasing uptake of private security agencies for protection of establishment\/goods\/person. Industry today requires private security to perform functions more than mere guarding services. However on non compliance with the provisions, required punishment under PSARA act is provided. The [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":9980,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[181],"tags":[620],"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":10938,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9962"}],"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=9962"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9962\/revisions"}],"predecessor-version":[{"id":69625,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/9962\/revisions\/69625"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/9980"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=9962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=9962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=9962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}