Need For PSARA License In Electronic Surveillance Agencies

Under the Private Security Agencies Regulation Act, of 2005, any entity offering security services in India is mandated to obtain the PSARA license. Security services encompass a wide range of security solutions such as armed and unarmed security personnel, event security, electronic surveillance agencies, commercial and residential security, and security consulting, among others. The act primarily focuses on security agencies operating in the private sector and does not consider police and armed forces.

All private security agencies, including those who provide electronic surveillance services, are required to obtain a PSARA License Online by Applying to the respective Controlling Authority. Failure to comply with the regulations under the PSARA Act can lead to severe penalties, fines, and legal repercussions.

Keep reading to get detailed insight into the PSARA rules and regulations for Electronic surveillance agencies in India.

What are E-Surveillance Agencies in Security Sector?

Electronic surveillance agencies collect information for criminal investigations, threat prevention, and proactive security management. Such agencies use technology to gather information like electronic communication, phone conversations, email messages, etc.

E-surveillance agencies conduct telephone interception such as recording phone calls, use CCTV cameras to monitor premises or individual, install web cam or spy camera to spy on people, and execute data mining, which involves analysing data from internet, social media, and other digital platforms.

The PSARA Act covers these agencies to ensure that they meet certain safety standards, provide reliable security services, and render technology-based security solutions with due approval from the concerned authorities. The license will make these agencies accountable for their actions and promote ethical practices in their operations.

Why Electronic Surveillance Agencies Need PSARA?

Electronic surveillance agencies are mandated to obtain a PSARA License Online Apply. The PSARA Act establishes a framework to also regulate those agencies that use technology to perform security services. Since these agencies deal with sensitive information, PSARA legally binds them to promote high standards in their security operations and create a safer environment. Electronic surveillance agencies require a PSARA license for the following reasons:

• Legal Basis for Operations: Any individual or a company (private limited, LLP, OPC, etc.) is mandated to apply for a PSARA license to commence security operations. Thus, no private security agency, including an electronic surveillance agency, can operate without obtaining a license issued under PSARA from the Controlling Authority.
• Enhance Trust and Credibility: PSARA license demonstrates agency’s commitment to ethical practices and instil confidence in clients that it adheres to prescribed industry standards. Further, the necessity to conduct antecedent verification and background check, verify qualification and suitability of security personnel, and examine whether they can effectively perform their job.
• Training and Skill Development: The PSARA regulations mandate agencies to impart the necessary skill development and training programs to their security personnel. It focuses on skills essential to operate the technological tools and devices. Proper training enhances the reliability of security agencies and ensures that all the security employees meet the specified training benchmark.

PSARA License helps in Gaining a Competitive Edge in Security Industry, even for electronic surveillance agencies. The license assures users that only legitimate and authorized security agencies operate in the security ecosystem, which translates to better market access and increased business opportunities for the business.

Things to Consider Before Applying For a PSARA License

Upon successful verification and examination of the application under the PSARA License Online Apply, the Controlling Authority may conduct a personal interview with the applicant. This will assess the suitability of the applicant and assist the authority in determining whether the license should be granted or not.

Before proceeding with a PSARA registration, it is essential to understand various rules and regulations. For instance, a foreign national cannot obtain a PSARA license. Similarly, the government of India permits Foreign Direct Investment (FDI) only up to the extent of 49%, which means an agency with a foreigner as a major shareholder will become ineligible to obtain a PSARA license. Applicants must also keep in mind the following requirements to seamlessly obtain their PSARA license:

• State-Level Variations: The PSARA Act regulations vary between states in India, in aspects like fees, licensing, and procedures. Each state appoints and designates a Controlling Authority that enforces the PSARA Act and regulates and oversees security agencies in their respective jurisdiction. The variations are evident from the rule that in Madhya Pradesh, an applicant has to submit Income Tax Returns (ITR) details of their directors of the preceding five years. However, in other states, this time frame is generally three years.
• Apply Separately: The central government of India regulates private security agencies through its PSARA Act 2005. Whereas, state government are empowered to formulate their own rules under the section 25 of PSARA Act. As a result, core regulations are similar yet some minor variations may arise in each state. Thus, agencies that are planning to operate in multiple states have to obtain a separate PSARA license for each state as the license is not transferable across states.
• Timely Compliances and Renewal: Every security agency is required to apply for renewal of license not less than 45 days before the date of license expiry. In addition, agencies are required to commence operation within 6 months of obtaining a license, set up training areas for their personnel, appoint supervisors, give preference to ex-servicemen while hiring security guards and supervisors, and conduct antecedent verification and background checks.
• Adherence to Security Standards: Upholding professionalism and maintaining ethical conduct in a security agency is pivotal to operate with no legal repercussions. It is essential to invest in training and skill upgradation programs of security personnel. Controlling Authority inspect security agencies at least twice in a year to examine the functioning of security agency from time to time.
• Maintain Registers: A private security agency, upon obtainment of a PSARA licence, is mandated to maintain registers which will contain all the necessary operational and personnel information. The register shall contain name and address of the person managing the company, security guards, supervisors, key managerial personnel, etc.

In addition, security agencies can leverage the Benefits of Cloud-Based Security for PSARA Agencies. Cloud-based security solutions enable companies to provide security services through a centralized security management system and protect data both in rest and transit.

How to Obtain a PSARA License under PSARA Act 2005?

To obtain a PSARA License Online by submitting the required documents and fees along with the prescribed form and police verification certificate. The PSARA licensing process encompasses the following major steps:

• Organize Required Documents: To obtain a PSARA License, it is essential to submit correct and accurate documents. This will enable quicker and smoother processing of the PSARA application and speed up the entire authorization process. The documents include Certificate of Incorporation, office address proof, PAN/ TAN, rental agreement or electricity or utility bill, police verification certificate, etc. In addition, the documents required for registration must be clear and in a legible form.
• Enter into an MOU: The PSARA Act 2005 lays down guidelines which mandates that every security guard and supervisor must be imparted necessary skills and training. For this, private security agencies can enter into a Memorandum of Understanding (MOU) with recognized training institutes. Further, the training curriculum should cover a wide range of subjects such as security procedures, physical fitness, legal aspects, etc.
• Fill Out Application Form: Once all the documents are compiled and agencies enter into an MOU with training institutes, the next vital step is to file the PSARA application to the Controlling Authority of the respective states. It must be noted that although the core requirements under the PSARA Act are generally the same, there might be slight variations in the licensing process within each state. For instance, states like Uttarakhand and West Bengal grant the PSARA License with a validity of only one year, unlike others whose validity extends up to five years.
• Police Verification: The PSARA Act mandates that every security guard and supervisor must undergo background checks and verification. In addition, other people associated with the security agency such as directors, partners, and employees are also required to comply with verification requirements. Upon submission of the application, the local police department will conduct a background check and antecedent verification. If the agency receives a green signal on all the verification parameters, it will be granted a No Objection Certificate (NOC).
• Grant of PSARA License: Once the Controlling Authority receives an NOC from the local police department, it will review the application form submitted by the applicants. The authority, after thorough examination, will either grant the license or reject the application. However, in case of refusal, the authority will provide a reasonable opportunity to applicants to present their clarification.

There are several Common Challenges in PSARA License Application & Solutions, including rejection of application on the grounds of moral turpitude or misconduct. It is necessary to navigate through the complex regulatory PSARA licensing process to ensure that you receive your PSARA license in a hassle-free and timely manner.

Final Thoughts

Every individual or body corporate willing to venture into the security industry has to obtain a PSARA License. It is mandatory to obtain the same to carry out and operate a private security agency in India. The applicant can be any person, however, there are certain restrictions stipulated under the PSARA Act which are necessary to be fulfilled. For instance, the director or principal officer of the agency must be an Indian citizen, must have attained a minimum of 18 years prior to license registration, and not have any adverse criminal case against them.

The rules of PSARA License Online Apply to all the private security agencies rendering security services in India. After completing all the documentation formalities and obtaining a police verification certificate, agencies can obtain a PSARA license. The Controlling Authority will make inquiries and obtain NOC from the police department to either approve or reject the application. It is imperative to understand all the requirements of the PSARA license to operate a security agency in India. With Legal Raasta, eliminate the chances of rejection and obtain a PSARA license with ease.