A Complete Overview of Suspension and Cancellation of
PSARA License
Meta Title - A Holistic Guide to the Suspension and Cancellation of PSARA License
Meta Description - A detailed guide to the process of suspension and cancellation of PSARA License. The
guide also provides a brief understanding of the various conditions for suspension and cancellation of PSARA
License and the penalties for non-compliance of the guidelines of PSARA, 2005.
With a growth in the amount of commercial activities and transactions that take place on a day-today basis in India, there has been a rise in instances of robberies and other criminal activities leading
to growing security concerns among business enterprises and establishments. With this, the need for
Private Security Agencies has only grown with time, leading to various new Private Security
Agencies being established to meet the growing demand.
Importance of PSARA License
In an aim to regulate these security agencies, the government enacted the Private Security Agencies
(Regulations) Act, 2005 on 14th March 2006, India. According to the Act, every private security
agency must mandatorily obtain a license for operating in the state. It also lays down the various
guidelines that the owners have to comply with at all times to qualify for the license and noncompliance may lead to the suspension and cancellation of the PSARA License along with severe
penalties of heavy fines and even imprisonment in certain cases.
Grounds of Cancellation of PSARA License
As per Section 13 (1), the Controlling Authority has the right to cancel the license of any security
agency if it violates certain conditions. The following are the grounds for cancellation of the PSARA
License •
Obtaining the license through misrepresentation, suppressing material facts, or using false
documents,
•
Violating the conditions laid down in the PSARA Act or upon which the PSARA license was
granted,
•
Misusing obtained information obtained during the discharge of duties as a private security
agency,
•
Falsely representing the agency’s affiliation with the government by using any letter-head,
advertisement, or in any other illegal manner,
•
Impersonating or aiding in the impersonation of a public servant,
•
Failure to commence activities on time, appoint the required supervisors, or provide services
agreed to any person or entity,
•
Non-compliance with court orders or lawful authorities,
•
Engaging in acts that threaten national security, public order, or law and order,
•
The guards employed by the private security agency have repeatedly been found ◦
Guilty of gross negligence in providing security,
◦
To be habitually drunk or indiscipline,
◦
To be committing a breach of trust or misappropriation of property in a place they
were supposed to protect,
◦
Conniving or abetting a crime against the person or property they were engaged to
guard,
◦
Engaged in committing illegal acts.
Procedure of Suspension and Cancellation of PSARA License
If the private security agency is found to be in violation of the above-mentioned provisions as
specified in Section 13 (1) of the PSARA, 2005, the Control Authority can order the cancellation of
PSARA License after providing the reasons for such cancellation in writing.
The authority can also suspend the license of the security agency for up to 30 days if it deems so fit.
The license holder has to then explain to the Controlling Authority within the next 15 days as to why
the suspension of the license should not be further extended till the determination of whether the
license needs to be canceled.
However, any such order of either suspension or cancellation of the PSARA License can only be
passed by the Cancellation Authority after giving the license holder a reasonable opportunity to be
heard and has to be given in writing by specifying the reasons based on which such action is being
taken.
Conditions for Suspension and Cancellation of PSARA License
The following conditions must be fulfilled by the Controlling Authority before passing an order of
suspension or cancellation of the PSARA License of a private security agency •
The license granted under this Act must not be canceled or suspended unless the holder of a
PSARA License has been given a reasonable opportunity to be heard.
•
He must be given an opportunity to show cause after giving due service of notice as to why
the license must not be canceled or suspended.
•
The opportunity of show cause may not be given when the license is suspended temporarily
pending an inquiry against the holder of the PSARA License for the violation of the grounds
of cancellation of license as laid down in Section 13 (1) of the PSARA, 2005.
Appeals Against Suspension and Cancellation of PSARA License
Any person who is aggrieved by an order of the suspension of a license under sub-section (2) of
section 13, or cancellation of the license under sub-section (1) of section 13 has the two remedies
which are:
•
He can prefer an appeal against such an order to the Home Secretary of the respective state
government vide preferred within a period of sixty days from the date when the order of
cancellation is passed.
•
An appeal can also be admitted after the expiry of the period of 60 days if the applicant
satisfies the state govt. with a reasonable ground for delay.
Every appeal when made under sub-section (1) must be made in Form VII or any such Form as
prescribed and must be signed by the aggrieved person or any authorized advocate and be delivered
to the Appellate Authority in person or sent via the registered person.
Penalty for A Private Security Agency Functioning without a PSARA
License
As per Section 20 of the PSARA, 2005, the penalty for operating a Private Security Agency without
a valid license can be a fine of up to Rs. 25,000 and imprisonment of up to 1 year. Further, the Act
also imposes a fine of up to Rs. 5,000 and imprisonment of up to 1 year if any private security guard
or supervisor wears an unauthorized uniform.
PSARA Licenses for National Security
The Central Government provides certain exemptions to certain clauses of the Arms Act to enable
companies, banks, industrial or other establishments to obtain licenses in the name of the legal entity
rather than in the name of the individual. Thereafter, the banks obtain weapons in the name of the
banks and then issue them to retired ex-servicemen to hold the arms to protect the bank premises on
a retainer ship basis. Certain categories of PSAs holding licenses for providing armed guards can also
be employed for such services.
The primary problem in such a case is that there is a lack of a unified system for providing a
nationwide PSARA license, due to which there is an absence of a homogenous set of rules and
regulations that applies to all private security agencies operating in the Nation. This eventually
complicates the process of enforcement and compliance of these rules by both the authorities as well
as the PSARA License holder.
Considering the strict rules of non-compliance which include heavy fines, suspension or cancellation
of the PSARA License, and even imprisonment in certain cases, there is a growing need to simplify
the regulatory measures to ensure that the stakeholders of the industry can grow professionally
without the threat of being punished for non-compliance.
Guidelines Followed to Avoid Cancellation of PSARA License
The Ministry of Home Affairs (MHA), in coordination with the State Governments, conducts a
periodic review and grading of the private security agencies. Once the assessment is complete, the
MHA consults with the State Government and all the stakeholders of the industry, it classifies the
duties from very critical to non-critical categories and the security agencies qualified for each of the
categories.
To ensure that the security agency does not fail in the assessment, there are certain steps to be
followed •
Ensure compliance with the PSARA License guidelines at all times.
•
•
•
•
•
Keep track of possible amendments in the provisions of the Private Security Agencies
(Regulation) Act, 2005, and ensure compliance with the latest norms.
Provide proper training for the guards and ensure that they remain disciplined during duty
hours.
Have mechanisms in place to ensure that the guards do not get involved in any illegal
activities.
Ensure that you or your security agency is not involved in any acts threatening the security of
India.
If the guards have a permit to carry arms during duty, ensure complete compliance with the
Arms Act and any other statute that the government mandates.
Why Adviso?
The process of suspension and cancellation of a PSRARA License requires you to comply with
several steps involving various documentation and legal requirements. While you can manage the
suspension and cancellation of a PSARA License for your private security company on your own, the
entire process is very cumbersome and will take a long time.
So, our team of experienced legal professionals at Adviso can help you in obtaining, manage, or
cancel your PSARA License in a seamless and hassle-free manner by ensuring that all the requisite
documents are filed and all the legal compliances are met efficiently. So, all you need is to give our
professional team a call and we will be happy to help you resolve any query that you might have.
Conclusion
With the rapid growth of the number of Private Security agencies in the country, the government has
stepped up the regulatory measures to ensure that these Private Security Agencies can be aptly
monitored. The PSARA Act, 2005 has enabled strict safeguards to ensure that the safety and security
of the citizens are maintained.
The PSARA, 2005 makes it mandatory for every private security holder to have a PSARA License
to be able to operate in the State. The Act also lays down the procedure for suspension and
cancellation of the PSARA License. The severe consequences of non-compliance make it very
important for the PSARA License holder to follow the due procedure for the suspension and
cancellation of the PSARA License. Considering that the compliance process can be rather
cumbersome, it is best to take the help of professional services like Adviso to ensure that all the
compliances are met in time and within a minimal budget.