Private Security Agency regulation act (PSARA) 2005
Private security (security to an individual other than a public servant) demand increased due to the tremendous increase in the number of business establishments. The growing tendency to hire security guards from private sources has led to the coming up of a large number of private agencies all over the country. These security agencies help a lot of people by providing security but the manner in which they function is a matter of concern, many times these agencies work carelessly due to which crime increases, and at present many MNC also provides security services in our country. The government of India enacted the Public Security Agency Regulation Act, 2005 under the administration of the Ministry of Home Affairs, to keep a check on the security agencies.
The Private Security Agencies Regulation Act, 2005 (PSARA) regulates the security industry in the country, through Controlling Authorities that are appointed by the State Governments of respective states. Separate rules are made by the respective states under the PSARA, 2005 which is in alignment with Private Security Agencies Central Model Rules, 2006.
Private Security Agency
According to section 2(g), Private Security Agency means a person or body of persons other than a government agency, department, or organization engaged in the business of providing private security services including training to private security guards or their supervisors or providing private security guards to any industrial or business undertaking or a company or any other person or property.
According to Section 4 of PSARA: No private company or individual can commence the business of Private Security Agencies without holding the license or permission from the authority. Though PSARA is administered by the Ministry of Home Affairs, still the licensing authority remains in the hand of State Governments.
The PSARA license is operated in one district of a state or the whole state. An agency can operate in more than one state, for that agency shall be registered separately in respective states.
Eligibility for PSARA License
Every company/ partnership/ limited liability partnership/ one-person company is eligible for the Private Security Agency (PSARA license).
Eligibility for designated partners/ director
1. Individuals must be Indian citizens.
2. Must be an adult that is above eighteen years.
3. A person should be of sound mind and capable of taking decisions.
4. Individuals must have ample financial resources to cater to business expenses.
5. Individuals must possess a crime-free record.
Prohibited persons to be partners or director
*Note: company, firm, or an association of persons shall not be considered for issue of a license under this Act, if, it is not registered in India, or has a proprietor or a majority shareholder, partner, or director, who is not a citizen of India.
All persons other than those mentioned are eligible for the PSARA license.
Procedure for PSARA License
Memorandum of Understanding (MoU)
The applicant is mandatorily required to enter into a Memorandum of Understanding (MoU) with the organization or institute involved in training security guards. The institute or the organization dealing in the training services must have obtained approval from the state controlling authority.
All Security guards should undergo proper training in the prescribed subject. A minimum of 120 Hours of Training should be obtained by a security guard before starting work as security personnel. However, in these training programs, special relaxation and flexibility are being provided to the ex-servicemen.
Police Verification
Every agency while making an application to the Controlling Authority for the grant of license shall also enclose Form II for verification of its antecedents.
The Controlling Authority shall make such inquiries, as it considers necessary to verify the contents of the application and the particulars of the applicant. The Controlling Authority shall utilize electronic databases of crime and criminals like the Crime and Criminal Tracking Networks and Systems (CCTNS), and Interoperable Criminal Justice System (ICJS) for the purpose of verification of antecedents of the applicant. mentioned in the order. The Controlling Authority shall pass an order on Form I within sixty days from the date of receipt of it complete in all respects.
Documents required for PSARA registration
Although the documents vary from state to state, there are common documents that you would require to attach along with the application for obtaining the PSARA License are following:
1. Identity proof of the directors and employees.
2. Address proof of the agency (property ownership/rent deed/ leased along with NOC)
3. The affidavit obtained under Private Security Agencies Regulation Act
4. Logo of the agency
5. PAN Card of promoters
6. Two photographs of the promoter
7. Details of registration obtained from the Service tax department
8. Certificate under the Shops and Establishment Act
9. Employee Provident fund (EPF) and Employee State Insurance Corporation (ESIC) registration
10. Security training affidavit
11. Armed license obtained by the authority.
12. Character certificate for employees
13. Statement of Income Tax Return {ITR} of each director
14. Incorporation certificate of the organization
15. Signed Memorandum of Association (MoA) with the training institute
16. Details of supervisor and security guards.
PSARA Renewal
PSARA registration is valid for 5 years, unless not cancelled under section 13 of PSARA, 2005. The registration may be renewed from time to time after the expiry of five years, for a further period of five years on payment of such fee as may be prescribed
An application for renewal of the license shall be made to the Controlling Authority, not less than forty-five days before the date of expiry of the period of validity The Controlling Authority shall pass an order on the application for renewal of license within thirty days from the date of receipt of application complete in all respects. The Controlling Authority may, after making such inquiries as he considers necessary and by order in writing, renew the license or refuse to renew the same: Provided that no order of refusal shall be made except after giving the applicant a reasonable opportunity of being heard.
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