Cancellation and Suspension of PSARA Licence: Complete Guide

Private Security Regulation Act, 2005 (PSARA) is an act that regulates all the actions of private security agencies. The PSARA license is mandatory for a person who wishes to start a private security business in India. With the growth of the economy, to ensure that the resources of the government are focused towards the delivery to the internal security, the private security agencies are considered a viable alternative to perform as traditional police in the non-critical security functions. However, if there is any violation to the provisions of the PSARA Act or on non-compliance of the conditions, the license can be cancelled or suspended by the authority. Therefore, this article will give a complete guide on the cancellation and suspension of PSARA License.

The purpose of the Act is to regulate the agencies so that the duties of the police are not intruded, or does not use weapons in an illegal manner or indulge in criminal activities and wear uniforms similar or resembling with the police.

Importance of PSARA License

The services of unarmed and armed security guards for the protection are provided by Private Security Agency Services (PSA). Such agencies help in providing security to the people by providing the services like a bodyguard, parking security, patrol services, guard dog etc. the services can be provided to the government companies, private companies, hotels, restaurants, housing societies, private bungalows, guesthouses etc. the Private Security Agency Services (PSA) are registered and regulated under the Private Security Regulation Act, 2005 (PSARA)^[1].

The Private Security Agencies also provides training to the security guards and not only just providing security services. The Section 4 of the Act clearly states that no person shall be allowed to carry on or commence the business until and unless he has a license issued under the PSARA Act to start a private security agency. Hence, it is mandatory to have a PSARA license to start and run a private security agency.

Grounds for Cancellation and Suspension of PSARA license under Section 13 of the Act

1. The cancellation and suspension of PSARA license can be done by the Controlling Authority having powers and authority under Section 13 (1), on one or more of the below mentioned grounds: –
2. The cancellation and suspension of PSARA license can be in circumstances where the license has been obtained by way of suppression or misrepresentation of the material facts.
3. If the license has been obtained by submitting false documents or photograph.
4. If the license holder has breached any of the conditions of the license or has violated any of the provisions or rules under the Act, the controlling authority has the power to do the cancellation and suspension of the PSARA license.
5. If the license holder has misused any information obtained by him during the performance or discharge of his duties as the private security agency to any business undertaking or company or an industry or any other person.
6. If any illegal use by way of advertisement, letter head or any other printed matter is done by the license holder, representing the private security agency as an instrument of government and using a name for the agency different from what has been registered for which license has been granted, would result into the cancellation and suspension of the PSARA license.
7. If any act of impersonation, abetment is done by the license holder or allowing or aiding someone to impersonate as a public servant, then it would result to the cancellation and suspension of the PSARA license of the license holder.
8. In cases where the private security agency has failed to perform or commence its activities or did not engage a supervisor within a specified time period, the license shall be cancelled and suspended.
9. If the license holder has failed or refuses to render services to a person agreed by him, then his license would stand cancelled or suspended.
10. If any act which is in violation of a court order or an order of the lawful authority, done by the license holder. And also where he has been assisting, encouraging or advising any person to violate a public order, in both such circumstances it would result into the cancellation and suspension of the PSARA license of the license holder.
11. If the license holder violates the provisions of the Act given in Schedule which may be modifies by the central government by the notification in the official gazette, the license shall be cancelled and suspended.
12. Where there have been repeated instances when the guards provided by the private security agency fails to act as follows: –
13. If the guard is found guilty of gross negligence in not providing security or where he fails to provide private security.
14. If the guard misappropriates the property or a part thereof which was supposed to be protected or where he commits a breach of trust.
15. If the guard is found to be an indiscipline person or is habitually drunk.
16. If the guard has committed or involved in committing crimes.
17. If the guard has abetted or connived a crime against the property or person placed under his charge.
18. If any act causing a threat to national security is done by the license holder, or where the license holder did not provide assistance to the police or other authority while performing his duties or acted in such a manner which is prejudicial to the national security or public order or law and order, then this would amount to the cancellation and suspension of the PSARA license.
19. The controlling authority can order for the cancellation and suspension of PSARA license after recording the reasons in writing. Once the authority is satisfied that the pending the question of cancellation and suspension of the PSARA license is on the one or more grounds as provided under Section 13 (1) of the Act, the controlling authority shall make an order in writing to suspend the operation of the license for a period of not more than 30 days as may be specified in the order. Further, the license holder is required to show the cause as to why his suspension of license should not extend till the determination of the question of cancellation, within 15 days from the date of issue of suspension order.
20. Every order for the cancellation and suspension of the PSARA license must be in writing and must specify the reasons for the same and the copy shall be provided to the person affected.
21. Unless the person has been given a reasonable opportunity of being heard, no order of cancellation and suspension of PSARA license under sub-section (1) shall be made.

What are the conditions for the Cancellation and Suspension of PSARA License?

It is compulsory to fulfil two conditions for the cancellation and suspension of PSARA license: –

1. Unless the license holder is given a reasonable opportunity of being heard, the cancellation and suspension of the PSARA license of the license holder cannot be done. The license holder can show cause upon the due service of notice for why his license should not be cancelled or suspended.
2. The license holder must not be given an opportunity for showing cause and of being heard when the license is suspended temporarily pending for an enquiry against him for contravention of any of the grounds mentioned in Section 13(1) of the act or any other conditions of the license granted to him.

Appeal under Section 14 of the Act for Cancellation and Suspension of PSARA license

A person aggrieved by the order of the Controlling Authority for the cancellation and suspension of the PSARA license under the section 13(1) and 13(2) or controlling authority refusing license under section 7(4) or renewal under section 8(1) can file an appeal under section 14 of the Act: –

1. An aggrieved person can make an appeal against the said order to the Home Secretary of the State Government within a period of 60 days from the date of the said order passed.
2. An aggrieved person/ appellant can also file an appeal after the expiry of the period of 60 days if the sufficient cause is provided by the appellant satisfying the State Government.
3. Every appeal made under section 13(1) must be made in such a form as may be prescribed also must be accompanied with a copy of the order against which an appeal is filed.
4. A reasonable opportunity of being heard must be given to the appellant by the State Government, before the disposal of the appeal.

Note: – every appeal under section 14 of the act must be made in a preferred Form- VII and must be signed by the aggrieved person or by an Advocate authorized by him and presented to the Appellate Authority in person or sent by registered post.

PSARA license for the purpose of National Security

• Certain exceptions are provided by the Central Government in certain clauses of the Arms Act to allow the industrial or other establishments, companies and banks to obtain licenses in the name of legal entity rather than in the name of the individual. Technically, the bank branches and managers do obtain weapons in the name of the bank branch and issue it on retainer ship basis to the retired ex-servicemen to carry the arms to protect the bank premises.
• Such exemptions include certain categories of Private security agencies having licenses for armed guard services to permit private security agencies to obtain arms in required numbers and then deliver the service. It is mandatory for Private Security Agencies to obtain PSARA license to run the business.
• The regulatory issue affects the industry to run its business in a professional manner and raise service- delivery as well as compliance standards. Hence it is necessary to create a single license system. And it can be a combination of State/ Central level registration, based on the factors such as size, employment terms and conditions, scale and area of operation, past experience and the like for the Private Security Agency (PSA).
• The act under the registration regulation can easily categorize the PSAs providing service on the bases of State level registration and Central registration. And the enforcement of the act can be categorized between central or state level authorities thereof.
• Because of the uniform licensing registration there can be a homogeneous set of rules and conditions of the operation that are made applicable. This would allow for the national level integration to monitor and plan effectively for the private security agencies and would reduce enforcement time.
• Establishing a single licensing framework and eliminating heterogeneous requirements under the act and several other state statutes governing the Private Security Agencies thereby encourages professional services and compliance driven operations.
• An expert panel is required to be created with State government, MHA and PSAs as members for any new regulations, rules and compliance requirement to make efficient implementation and enforcement.

What are the guidelines to avoid Cancellation and Suspension of PSARA license?

The MHA in coordination with the State Government is required to conduct a proper review and grading of security establishments and duties. And upon the consultation with all the industry participants and government, devise a framework for PSAs to perform non- critical and critical duties and to initiate PSAs to conduct quasi- internal security functions to fully assist the police forces and allow PSAs to conduct services beyond traditional security work which also included armed guard services. Audit requirements and compliance under the act is to be developed for armed guard service licenses to PSAs.

Conclusion

The work performed by the Private Security Agencies (PSA) is monitored by the State Government. And the cancellation and suspension of the PSARA license is done by the authority if any violation of the norms and guidelines in the PSARA Act is done by the license holder. Therefore it is important for the license holder to discharge its duties in such as manner that complies with the provisions of the PSARA Act.