An Overview on PSARA License Renewal and Penalties

Ashish M. Shaji

15 Feb, 2021

Private Security Agencies Regulation Act, 2005 regulates the Private Security Industry in India. In order to start a private security business in India, obtaining PSARA License is essential. PSARA License is issued to operate in one or more districts of a state or for the entire state. In this article, we shall have a look at some of the essentials of PSARA License. Also, we will be looking at PSARA License Renewal and Penalties associated.

What do you mean by Private Security Agency?

Private Security Agency are those person/s other than a government agency, department, or organization that is engaged in the business of providing the services of private security. It involves imparting training to private security guards or providing such guards to any industrial or business undertaking or a company.

Points to know before applying for PSARA License/PSARA License Renewal

The following points may be noted:

• FDI is not permitted in PSARA;
• Applicant must be in possession of an office before applying for this license. It may be rented, leased, or owned. In case it is rented, then rent agreement may be registered or unregistered;
• In some state, the applicant should be financially sound, and it should reflect in its ITR;
• Anyone can apply for PSARA License and is not limited to ex-servicemen of armed forces or any other force;
• It shall be valid for five years unless is cancelled under subsection (1) of section 13;
• PSARA License Renewal is necessary from time to time after the expiry of five years for an additional time of 5 years on payment of renewal fee.

How to obtain PSARA License?

An application may be made to the controlling authority by a private security agency for grant of license in the following manner:

• The applicant can submit an affidavit with the details as per the provisions in Section 6. The conditions prescribed under section 11 should also be fulfilled, and it shall be checked if any case is registered with police or pending in the court of law involving the applicant.
• The application made under sub-section (1) should be accompanied by a fee of-
• 5000 rupees, if the agency is operating in one district of a state;
• 10000 rupees, if the agency is operating in more than one but up to 5 districts;
• 25000 rupees, if it is operating in the whole state.
• When the application is received by the controlling authority, it may make inquiries and then obtain a NOC from the police authority. The authority shall order in writing to grant a license or not grant the license within 60 days period from the date of receipt of application.

PSARA License Renewal

To renew the PSARA License, the following points may be noted:

• An application can be made for renewal of PSARA License to the controlling authority not less than 45 days before the expiry of the validity period. It shall be made in the form as may be prescribed and has to be accompanied by the relevant fee and documents provided under section 6, 7, and 11 of the Act.
• The controlling authority shall pass an order on the application of renewal of PSARA License within 30 days from the date of receipt of application.
• When the controlling authority receives the application, it shall make such inquiries as deemed necessary and thereafter may renew or refuse to renew the license by making an order in writing. However, in case of refusal to renew such license, a reasonable opportunity shall be given to the applicant of being heard.

Conditions for PSARA License Renewal in Delhi

• Every private security agency shall apply to the controlling authority for the license renewal not less than 90 days before the expiry of the validity period of the license.
• The authority can renew such license up to a further period of 5 years.
• The fee chargeable for license renewal will be as applicable for the grant of license.
• The applicant is required to maintain his principal place of business in the Controlling authority jurisdiction.
• The applicant is required to ensure the availability of the training of its guards and supervisors.
• The applicant shall continue to adhere to the conditions under grant of license.
• The police should have no objection to the renewal of the PSARA License of the applicant.

Penalties under PSARA Act

Punishment for not having a valid license

A person operating without a valid license under PSARA shall be punished with imprisonment for a term which can extend to one year or with a fine which can extend to a total of Rs. 25000 or with both. Therefore all private security agencies must get a license under PSARA to function in India. This license is mandatory for those running private security agencies.

Penalty for unauthorized use of certain uniforms

In case any private security guard/supervisor wears the uniform of the Navy, Army, Air force or any other armed forces of the union or police or any dress having the appearance or having any of the distinctive marks of the above mentioned uniforms, he and the proprietor of such agency shall be punished with imprisonment for a term which can extend to one year or with a fine which can extend to a total of Rs. 5000 or with both.

Offences by Companies

If an offence has been committed by a company under this Act, every person in charge and who was responsible to the company for business conduct of the company and the company shall be deemed to be guilty of the offence. If such person liable to punishment proves that the offence was committed without his knowledge or that he exercised all diligence to prevent the commission of such offence, nothing shall render any such person liable to any punishment.

Conclusion

It may be noted that the Indian Government recently launched Private Security Agency^[1] Licensing Portal with a single-window system for licensing across the country. It has been made to ease the process of obtaining PSARA License.  For smooth functioning of the private security agency, it is advised to obtain this license and do timely PSARA License Renewal as well.

Read our article:Important Details About the PSARA License 2005