The Private Security Agencies (Regulation ) Act, 2005

The Private  
 
  Security 
 
  Agencies 
 
  ( Regulation ) 
 
  Act, 2005 
 
  (No.29 of 2005 ) 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ministry of Law and Justice 
( Legislative Department ) 
 
New Delhi, the 23 rd  June, 2005/Asadha 2, 1927 (Saka) 
 
 The following Act of Parliament received the assent of the President 
on the 23 rd  June, 2005, and is hereby published for general information :- 
 
The PRIVATE SECURITY AGENCIES 
(REGULATION) ACT, 2005 
No.29 OF 2005         (23 rd  June, 2005)  
 
An Act to provide for the regulation of private security agencies and for 
matters connected therewith or incidental thereto. 
 
Be it enacted by Parliament in the Fifty-sixth year of the year of the 
Republic of India as follows:- 
 
1. (1) This Act may be called the Private Security Agencies  
(Regulation) Act, 2005. 
 
(2)  It extends to the whole of India except the State of Jammu 
and Kashmir. 
 
(3)  It shall come into force on such date as the Central 
Government may, by notification in the Official Gazette, 
appoint. 
 
2.  In this Act, unless the context otherwise requires:- 
 
(a)  “armoured car service” means the service provided by 
deployment of armed guards alongwith armoured car and 
such other related services which may be notified by the 
Central Government or  as the case may be, the State 
Government from time to time; 
 
(b)  “Controlling Authority”; means the Controlling Authority 
appointed under sub-section (1) of section 3; 
 
Came in force with effect from 15 th  March, 2006, according to S.O., 317(E), 
Government of India, Ministry of Home Affairs, notification dated 14 th  
March, 2006. 
(c)  “Licence” means a Licence granted under sub-section (5) of 
section 7; 
 
(d)  “notification” means a notification published in the Official 
Gazette;+ 
 
(e)  “ prescribed” means prescribed by rules made under this Act; 
 
(f)  “private security’ means security provided by a person, other 
than a public servant, to protect or guard any person or 
property or both and includes provisions of armoured car 
service; 
 
(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 
supervisor or providing private security guards to any 
industrial or business undertaking or a company or any other 
person or property; 
 
(h)  “private security guard” means a person providing private 
security with or without arms to another person or property 
or both and includes a supervisor; 
 
(i)  “State Government”, in relation to a Union territory, includes 
the Administrator of that Union territory appointed by the 
President under article 239 of the Constitution. 
 
3. (1) The State Government shall, by notification, designate an  
officer not below the rank of a Joint Secretary in the Home 
Department of the State or an equivalent officer to be the 
Controlling Authority for the purposes of this Act. 
 
(2)  The State Government may, for efficient discharge of 
functions by the Controlling Authority, provide it with such 
other officers and staff and that Government considers 
necessary. 
 
4. No person shall carry on or commence the business of private 
security agency, unless he holds a licence issued under this Act. 
 
 
 Provided that the person carrying on the business of private security 
agency, immediately before the commencement of this Act, may 
continue to do so for a period of one year from the date of such 
commencement and if he has made an application for such licence 
within the said period of one year , till the disposal of such 
application. 
 
 Provided further that no private security agency shall provide 
security abroad, without obtaining permission of the Controlling 
Authority, which shall consult the Central Government before 
according such permission. 
 
5.  An application for issue of a licence under this Act shall only be 
considered from a person after due verification of his antecedents. 
 
6.  (1) A person shall not be considered for issue of Licence under 
this Act, if he has been :- 
 
(a)  Convicted of an offence in connection with 
promotion, formation or management of a company 
(any fraud or misfeasance committed by him in 
relation to the company), including an undischarged  
insolvent ; or 
 
(b)  convicted by a competent court for an offence, the 
prescribed punishment for which is imprisonment of 
not less than two years; or 
 
(c)  Keeping links with any organization 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; or 
 
(d)  dismissed or removed from Government service on 
grounds of misconduct or moral turpitude. 
 
(2)  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. 
 
7.  (1) An application for grant of licence to a private security 
agency shall be made to the Controlling Authority in such 
form as may be prescribed. 
 
(2)  The applicant shall submit an affidavit incorporating the 
details in relation to the provisions contained in section 6, 
ensure the availability of the training for its private security 
guard and supervisors required under sub-section(2) of 
section 9, fulfilment of conditions under section 11 and of 
cases registered with police or pending in a court of law 
involving the applicant. 
 
(3)  Every application under sub-section (1) shall be accompanied 
by a fee of- 
 
(a)  rupees five thousand if the private security agency is 
operating in one district of State; 
 
(b)  rupees ten thousand if the agency is operating in more 
than one but up to five districts of State; and 
 
(c)  rupees twenty-five thousand if it is operating in the 
whole State. 
 
(4)  On receipt of an application under sub-section (1), the 
Controlling Authority may, after making such inquiries as it 
considers necessary and obtaining no objection certificate 
from the concerned police authority, by order in writing, 
either grant a licence or refuse to grant the same within a 
period of sixty days from the date of receipt of application 
with complete  particulars and the prescribed fee: 
 
Provided that no order of refusal shall be made unless – 
 
(a)  the applicant has been given a reasonable opportunity 
of being heard; and 
 
(b)  the grounds on which licence is refused is mentioned 
in the order. 
 
(5)  A licence granted under this section :- 
 
(a)  shall be valid for a period of five years unless the 
same is cancelled under sub-section (1) of section 13; 
 
(b)  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; and 
 
(b)  shall be subject to such conditions as may be 
prescribed. 
 
8.  (1)   An application for renewal of licence shall be made to the 
Controlling Authority, not less than forty-five days before 
the date of expiry of the period of validity thereof, in such 
form as may be prescribed and shall be accompanied by the 
requisite fee and other documents required under section 6, 7 
and 11 of this Act. 
 
(2)  The Controlling Authority shall pass an order on application 
for renewal of licence within thirty days from the date of 
receipt of application complete in all respects. 
 
(3)  On receipt of an application under sub-section (1), the 
Controlling Authority may, after making such inquiries as he 
considers necessary and by order in writing, renew the 
licence 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. 
 
9.  (1) Every private security agency shall, within six months of 
obtaining the licence, commence its activities. 
 
(2)  Every private security agency shall ensure imparting of such 
training and skills to its private security guards and 
supervisors as may be prescribed. 
 
Provided that the person carrying on the business or private 
security agency, before the commencement of this Act, shall 
ensure the required training to its security guards and 
supervisors within a period of one year from the date of 
such commencement. 
 
(3)  Every private security agency shall, within sixty days from 
the date of issue of the licence, employ such number of 
supervisors, as may be prescribed. 
 
(4)  A private security agency shall not employ or engage a 
person as a supervisor unless he fulfils the conditions 
specified in sub-section (1) of section 10. 
 
(5)  While engaging a supervisor of private security guards, 
every private security agency shall give preference to a 
person who has experience of serving in the Army, Navy, 
Air Force or any other Armed forces of the Union or State 
Police including armed constabularies and Home Guards for 
a period of not less than three years. 
 
10.  (1) A private security agency shall not employ or engage any 
person as a private security guard unless he – 
 
(a)  is a citizen of India or a citizen of such other country 
as the Central Government may, by notification in the 
Official Gazette, specify; 
 
(b)  has completed eighteen years of age but has not 
attained the age of sixty-five years; 
 
(c)  satisfies the agency about his character and 
antecedents in such manner as may be prescribed. 
 
(d)  has completed the prescribed security training 
successfully; 
 
(e)  fulfils such physical standards as may be prescribed; 
and 
 
(f)  satisfies such other conditions as may be prescribed. 
 
(2)  No person who has been convicted by a competent court or 
who has been dismissed or removed on grounds of 
misconduct or moral turpitude while serving in any of the 
armed forces of the Union, State Police Organisations, 
Central or State Governments or in any private security 
agency shall be employed or engaged as a private security 
guard or a supervisor. 
 
(3)  Every private security agency may, while employing a 
person as a private security guard, give preference to a 
person who has served as a member in one or more of the 
following namely :- 
(i)  Army; 
 
(ii)  Navy; 
 
(iii)  Air Force; 
 
(iv)  Any other armed forces of the Union. 
 
(v)  Police, including armed constabularies of States; and  
 
(vi)  Home Guards. 
 
11.  (1) The State Government may frame rules to prescribe the 
conditions on which licence shall be granted under this Act 
and such conditions shall include requirements as to the 
training which the licensee is to undergo, details of the 
person or persons forming the agency, obligation as to the 
information to be provided from time to time the Controlling 
Authority regarding any change in their address, change of 
management and also about any criminal charge made 
against them in the course of their performance of their 
duties of the private security agency or as the case may be, a 
private security guard employed or engaged by them. 
 
(2)  The State Government may make provision in the rules to 
verify about imparting of required training by the private 
security agency under sub-section (2) of section 9 and to 
review continuation or otherwise of licence of such private 
security agency which may not have adhered to the 
condition of ensuring the required training. 
 
12.  Every private security agency shall exhibit its licence or copy 
thereof in a conspicuous place of its business. 
 
13.  (1) The Controlling Authority may cancel any licence on any 
one or more of the following grounds, namely – 
 
(a)  that the licence has been obtained on 
misrepresentation or suppression of material facts.  
 
(b)  that the licence holder has used false documents or 
photographs; 
 
(c)  that the licence holder has violated the provisions of 
this Act or the rules made thereunder or any of the 
conditions of the licence; 
 
(d)  that the licence holder has misused information 
obtained by him during the discharge of his duties as 
the private security agency to any industrial or 
business undertaking or a company or any other 
person; 
 
(e)  that the licence holder by using any letter-head, 
advertisement or any other printed matter or in any 
other manner represented that the private security 
agency is instrumentality of the Government or such 
agency is or has been using a name different from that 
for which licence has been granted. 
 
(f)  that the licence holder is or has been impersonating or 
permitted or aiding or abetting any body to 
impersonate as a public servant; 
 
(g)  that the private security agency had failed to 
commence its activities or to engage a supervisor 
within the specified time period; 
 
(h)  that the licence holder is or has willfully failed or 
refused to render the services agreed to any person; 
 
(i)  that the licence holder has done any act which is in 
violation of a court order or an order of a lawful 
authority or is or has been advising, encouraging or 
assisting any person to violate any such order; 
 
(j)  that the licence holder has violated the provisions of 
the Acts given in the Schedule which may be modified 
by the Central Government, by notification in the 
Official Gazette; 
 
(k)  that there have been repeated instances when the 
private security guard or guards provided by the 
private security agency –  
 
(i)  failed to provide private security or were guilty of 
gross negligence in not providing such security; 
 
(ii)  committed a breach of trust or misappropriated 
the property or a part thereof which they were 
supposed to protect; 
 
(iii)  were found habitually drunk or indiscipline; 
 
(iv)  had connived or abetted a crime against the 
person or property placed under their charge; or 
 
(l)  that the licence holder has done any act which poses a 
threat to national security, or did not provide 
assistance to the police or other authority in the 
discharge of its duties or acted in a manner prejudicial 
to national security or public order or law and order. 
 
(2)  Where the Controlling Authority, for reasons to be recorded 
in writing, is satisfied that pending the question of canceling 
of licence on any of the grounds mentioned in sub-section 
(1), it is necessary to do so, that Controlling Authority may, 
by order in writing, suspend the operation of the licence for 
such period not exceeding thirty days as may be specified in 
the order and require the licence holder to show cause, 
within fifteen days from the date of issue of such order, as to 
why the suspension of the licence should not be extended till 
the determination of the question of cancellation.  
 
(3)  Every order of suspending or cancelling of a licence shall be 
in writing and shall specify the reasons for such suspension 
or cancellation and a copy thereof shall be communicated to 
the person affected. 
 
(4)  No order of cancellation of licence under sub-section (1) 
shall be made unless the person concerned has been given a 
reasonable opportunity of being heard. 
 
14.   (1) Any person aggrieved by an order of the Controlling 
Authority refusing the licence under sub-section (4) of 
Section 7 or renewal under sub-section (3) of section 8 or 
order of suspension of licence under sub-section (2) of 
section 13 or cancellation of licence under sub-section       
(1) of that section, may prefer an appeal against that order to 
the Home Secretary of the State Government within a period 
of sixty days of the date of such order: 
 
Provided that an appeal may be admitted after the expiry of 
the said period of sixty days if the appellant satisfies the 
State Government that he has sufficient cause for not 
preferring the appeal within that period. 
 
(2)  Every appeal under sub-section (1) shall be made in such 
form as may be prescribed and shall be accompanied by a 
copy of the order appealed against. 
 
(3)  Before disposing of an appeal, the State Government shall 
give the appellant a reasonable opportunity of being heard. 
 
15.  (1) Every private security agency shall maintain a register 
containing –  
 
(a)  the names and addresses of the persons managing the 
private security agency; 
 
(b)  the names, address, photographs and salaries of the 
private security guards and supervisors under its 
control; 
 
(c)  the names and addresses of the persons whom it had 
provided private security guards or services; and 
  
(d)  such other particulars as may be prescribed. 
 
(2)  The Controlling Authority may call for such information as it 
considers necessary from any private security agency, 
supervisor or private security guard to ensure due 
compliance of the Act. 
 
16.  The Controlling Authority or any other officer authorized by it in 
this behalf may at any reasonable time, enter the premises of the 
private security agency and inspect and examine the place of 
business, the records, accounts and other documents connected with 
the licence and may take copy of any document. 
 
17.  (1) Every private security guard shall be issued a photo identity 
card, by the private security agency employing or engaging 
the guard. 
 
(2)  The photo identity card under sub-section (1) shall be issued 
in such form as may be prescribed. 
 
(3)  Every private security guard or supervisor shall carry on his 
person the photo identity card issued under sub-section (1) 
and shall produce it on demand for inspection by the 
Controlling Authority or any other officer authorized by it in 
this behalf. 
 
18.  (1) Any person who may be or has been employed or engaged as 
a private security guard by the private security agency shall 
not divulge to anyone other than the employer, or in such 
manner and to such person as the employer directs, and 
information acquired by him during such employment with 
respect to the work which he has been assigned by such 
employer, except such disclosure as may be required under 
this Act or in connection with any inquiry or investigation by 
police or as may be required by an authority or process of 
law. 
 
(2)  All private security guards of a private security agency shall 
render necessary assistance to the police or to such authority 
in the process of any investigation pertaining to the activities 
of that agency. 
 
(3)  If violation of any law is noticed by any private security 
guard during the course of discharge of his duties, he shall 
bring it to the notice of his superior, who in turn shall inform 
the police either through his employer or agency or on his 
own. 
 
19.   The State Government may, by notification, direct that any power 
or function (except the powers to make rules under section 25) – 
 
(a)  which may be exercised or performed by it, or 
 
(b)  which may be exercised or performed by the Controlling 
Authority, under the Act, may, in relation to such matter and 
subject to such conditions, if any, as may be specified in the 
notification, be also exercised or performed by such officer 
or authority subordinate to the Government or officer 
subordinate to the Controlling Authority, as may be specified 
in such notification. 
 
 
20.  (1) Any person who contravenes the provisions of section 4 shall 
be punishable with imprisonment for a term which may 
extend to one year, or with five which may extend to twenty-
five thousand rupees, or with both. 
 
(2)  Any person or private security agency who contravenes, the 
provisions of sections 9, 10 and 12 of the Act, shall be 
punishable with a fine which may extend to twenty-five 
thousand rupees, in addition to suspension or cancellation of 
the licence. 
 
21.  If any private security guard or supervisor wears the uniform of the 
Army, Air force, Navy or any other armed forces of the Union or 
Police or any dress having the appearance or bearing any of the 
distinctive marks of that uniform, he and the proprietor of the 
private security agency shall be punishable with imprisonment for a 
term which may extend to one year or with fine which may extend 
to five thousand rupees, or with both. 
 
22.  (1)  Where an offence under this Act has been committed by a 
company, every person who at the time the offence was 
committed was in charge of, and was responsible to, the 
company for a conduct of the business of the company as 
well as the company, shall be deemed to be guilty of the 
offence and shall be liable to be proceeded against and 
punished accordingly. 
 
Provided that nothing contained in this sub-section shall 
render any such person liable to any punishment, if he proves 
that the offence was committed without his knowledge or 
that he had exercised all due diligence to prevent the 
commission of such offence. 
 
(2)  Notwithstanding anything contained in sub-section (1), 
where any offence under this Act has been committed by a 
company and it is proved that the offence has been 
committed with a consent or connivance of, or is attributable 
to, any neglect on the part of any director, manager, 
secretary or other officer of the company, such director, 
manager, secretary or other officer shall be deemed to be 
guilty of that offence and shall be liable to be proceeded 
against and punished accordingly. 
 
Explanation – For the purposes of this section – 
 
(a)  “company” means any body corporate and includes a 
firm or other association of individuals; and 
   
(b)  “director”, in relation to a firm, means a partner in the 
firm. 
  
23.  No suit, prosecution or other legal proceeding shall lie against the 
Controlling authority or any other officer authorized by it in respect 
of anything in good faith done or intended to be done under this Act. 
 
24.  The Central Government may frame model rules in respect of all or 
any of the matters with respect to which the State Government may 
make rules under this Act, and where any such model rules have 
been framed the State Government shall, while making any rules in 
respect of that matter under section 25, so far as is practicable, 
conform to such model rules. 
 
25.  (1) The State Government may, by notification, make rules for 
carrying out the provisions of this Act. 
 
(2)  In particular, and without prejudice to the generality of the 
foregoing power, such rules may provide for all or any of the 
following matters namely:- 
 
(a)  the procedure for verification of character and 
antecedents under clause (c) of sub-section (1) of 
section 10; the type of training under clause (d) of 
sub-section (1) of section 10; the physical standard 
under clause (e) of sub-section (1) of section 10; and 
other conditions under clause (f) of sub-section (1) of 
section 10; 
 
(b)  the number of supervisors to be employed under sub-
section (3) of section 9; 
 
(c)  the form of an application for grant of licence under 
sub-section (1) of section 7; 
 
(d)  the form in which the licence to be granted under sub-
section (4) of section 7 and conditions subject to 
which such licence to be granted under section 11;  
 
 
(e)  the form of an application for renewal of licence under 
sub-section (1) of section 8; 
 
(f)  the form under sub-section (2) of section 14 for 
preferring an appeal; 
 
(g)  particulars to be maintained in a register under sub-
section (1) of section 15; 
 
(h)  the form in which photo identity card under sub-
section (2) of section 17 be issued; 
 
(i)  any other matter which is required to be, or may be, 
prescribed.   
 
(3)  Every rule made by the State Government under this section 
shall be laid, as soon as may be after it is made, before each 
House of the State Legislature where it consists of two 
Houses, or where such Legislature consists of one House, 
before that House. 
 
(4)  In respect of Union territories, every rule made to carry out 
the provisions of the Act shall be laid before each House of 
Parliament and where there exists a Legislative Assembly, 
before that Assembly.  
THE SCHEDULE 
 
{ See Section 13(1)(i) } 
 
 
(1)  The Payment of Wages Act, 1936 (4 of 1936). 
 
(2)  The Industrial Disputes Act, 1947 (14 of 1947). 
 
(3)  The Minimum Wages Act, 1948 (11 of 1948). 
 
(4)  The employees’ Provident Funds and Miscellaneous 
Provisions Act, 1952 (19 of 1952). 
 
(5)  The Payment of Bonus Act, 1965 (21 of 1965). 
 
(6)  The Contract Labour (Regulation and Abolition) Act, 1970 
(37 of 1970). 
 
(7)  The Payment of Gratuity Act, 1972 (39 of 1972). 
 
(8)  The Equal Remuneration Act, 1976 (25 of 1976). 
 
(9)  The Inter-State Migrant Workmen (Regulation of 
Employment and Conditions of Service) Act, 1979 (30 of 
1979). 
 

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