Section 6 deals with the disqualifications of an applicant. Applicants cannot obtain licenses, if –

• They have been convicted for an offense in connection with the promotion, formation or management of a company;
• They have been convicted by a competent court for an offense the prescribed punishment of which is not less than two years;
• They have links with an organization or association which is banned by any law on account of their activities against public order or national security;
• They have been dismissed or removed from Government service on grounds of misconduct or moral turpitude;
• The Company has not been registered in India;
• The Proprietor of the Company is not Indian;
• The Majority shareholding is not held by an Indian.

No. Section 4 provides that in case an agency wishes to provide security services abroad, it must first obtain permission from the Controlling Authority, which shall consult the Central Government before deciding the same.

Every State Government designates an officer of the Joint Secretary Rank in the Home Department or an equivalent officer to serve as the Controlling Authority under the PSARA.

A Private Security Agency is a person, or group of people who are separate from the Government and engaged in the business of providing private security services, including the training of guards/supervisors or providing guards/supervisors to other business undertakings.

 Section 7(3) outlines the fees to be paid for an application for a license,

• If the PSA operates in only one district of the State, the fees are Rupees 5000;
• If the PSA operates in more than one but up to five districts, then the fees are Rupees 10,000;
• If it operating in the whole state, then the fees are Rupees 25,000;

Section 7(4) obliges the Controlling Authority to respond to an application (that is either grant or refuse to grant the license) within 60 days from the date of receipt of complete application.

A license stays valid for a period of five years unless canceled earlier.

Section 13 of the PSARA provides the grounds of cancellation of a license, which are –

• A license was obtained through misrepresentation/suppression of material facts;
• A license was obtained through the use of false documents/photographs;
• License-holder has violated the provisions of PSARA or the conditions by which the license was given;
• License-holder misused information obtained during the discharge of the agency’s duties in providing security;
• License-holder misrepresented that it is an instrumentality of the Government;
• License-holder impersonated, or abetted impersonation of a Government Servant;
• The Private Security Agency has failed to operate post one year of grant of license;
• License holder failed to render services agreed to another person;
• License Holder has done, or lent assistance in doing, something in contravention of a Court order;
• There have been repeated instances where the guards employed by the Private Security Agency were –
  • Guilty of gross negligence;
  • Committed breach of trust or misappropriation of property they were supposed to protect;
  • Were found drunk/undisciplined;
  • Were guilty of crimes;
  • Had schemed against the property they were supposed to protect.
• That the license holder or his Acts pose a threat to national security;