Private Security Agencies Regulation Act, 2005 (PSARA) regulates the Private Security Industry in India.

This Act regulates functioning of the private security agencies through Controlling Authorities which are appointed by State Governments. The Ministry of Home Affairs administers this Act. Separate Rules are made by respective States under PSARA Act, 2005 which is in alignment with Private Security Agencies Central Model Rules, 2006.

Private Security Agencies are those organisations who are involved in providing security services to any Property or to any Human, including training of Security Guards. No Company or Individual can commence a business or provide security guard without holding a valid license. It is mandatory to obtain license from State Authority concerned. It means even if PSARA is centrally controlled by Ministry of Home Affairs, still the authority to issue license has been delegated to respective State Government.

The PSARA License is issued to operate in one or more district of a particular state or for the entire State. If anyone wants to run Security Business in Multiple States, then they need to make separate application in each state and have to comply with respective State procedure.

Eligibility –

All Indian nationals are eligible for PSARA license as an Individual/Firm/Company, except the one who falls under following category –

1) Convicted for an offence in connection with promotion or formation of company

2) Convicted by court for an offence, punishment for which is imprisonment of not less than 2 years.

3) Keeping links with any organisation or association which is banned under any law on account of their activities which pose threat to national security or public order or there is information about such a person indulging in activities which are prejudicial to national security or public order.

4) Dismissed or removed from Government service on grounds of misconduct or moral turpitude.

5) A company, firm or an association of persons shall not be considered for issue of a licence under this Act, if, it is not registered in India, or having a proprietor or a majority shareholder, partner or director, who is not a citizen of India.

There are few requirements which need to be taken care before applying for the PSARA license –

1) Foreign Direct Investment is not allowed in PSARA.

2) Applicant should be in possession of an office prior to applying for license. It can be rented, leased or owned. If it is rented then rent agreement may be registered or unregistered and No Objection Certificate (NOC) from owner the premises is must.

3) In some state’s applicant should be financially sound, which should reflect in its Income Tax Return.

4) There is no Minimum Educational Qualification required.

5) Anyone can apply for PSARA license; it is not limited to Ex-servicemen of armed forces or any other forces.

Forms

Following are the Various forms which comes under PSARA –

Form

Description

Form I Verification of Character & Antecedents of Applicant
Form II Form for Verification of Character and Antecedents of Security

Guard and Supervisor

Form III Character and Antecedents Certificate
Form IV Training Certificate
Form V Application for New License/Renewal of License to engage in Business of Private Security Agency
Form VI License to engage in the business of Private Security Agency
Form VII Form for Appeal
Form VIII Register of Particulars
Form IX Photo ID Card for Private Security Guard/ Supervisor

Renewal of License –

PSARA License is valid for the period of 5 years from the date of grant of License. After completion of it, the applicant needs to get it renewed for the next 5 years after payment of stipulated fee. Application for renewal should be made 45 days prior to expiry of License.

Amendments made in 2019 for PSARA Act 2005 –

Government of India has recently launched Private Security Agency Licensing Portal, with features of single window system for licensing across the country, linked with Integrated Criminal Justice System (ICJS) for antecedent’s verification, online payment of licensing fees, along with facilities of e-sign and geo-tagging to ease the process of PSARA License. Some of the States have accepted the Online Procedure, where some States are still in process of the acceptance.

Major Amendments in 2019 –

1) As Private Security Agency Licensing Portal has been launched, thus now there will be no need of manual police verification of details of Directors/Partners/Proprietor at the time of applying for grant of license for private security agency.

2) Controlling Authority shall utilize electronic databases of crime & criminal like CCTNS, ICJS and similar facilities for verification of antecedents of the applicant.

3) For payment of fees for license, electronic method like Demand Draft or banker’s cheque will be accepted.

4) Center has made the National Skill Qualification Framework (NSQF) mandatory from 27th December 2018.

5) Based on training completed and requirement of the job, Private Security agencies will be allowed their own designations under the rules subject to the condition that no agency shall adopt any of the ranks of the armed forces, paramilitary forces or state police forces.

6) Character & Antecedent Certificate once issued will be valid for 3 years irrespective of change in employer status

7) The Controlling Authority either by itself or through its officer shall verify the premises of the private security agency at the address or addresses provided by the agency.

8) The Controlling Authority shall cause a physical copy of the license to be delivered by post within 15 days of issue to the registered office of the private security agency which the private security agency shall be bound to display at its place of business.

Author Bio

Qualification: CA in Practice
Company: Bizzonns
Location: Mumbai, Maharashtra, IN
Member Since: 06 Jun 2019 | Total Posts: 1

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