A Complete Overview of Suspension and Cancellation of PSARA License 

With a growth in the amount of commercial activities and transactions that take place on a day-to-day 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 non-compliance 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. 

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