Section 3 in The Private Security Agencies (Regulation) Act, 2005
Title: Appointment of Controlling Authority
(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 as that Government considers necessary.
Title: Persons or Private Security Agency not to engage or provide private security guard without licence
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 private security abroad without obtaining permission of the Controlling Authority, which shall consult the Central Government before according such permission.
Title: Eligibility for licence
An application for issue of a licence under this Act shall only be considered from a person after due verification of his antecedents.
Title: Persons not eligible for licence
(1) A person shall not be considered for issue of a 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 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; 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.
Title: Application for grant of licence
(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 guards 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 a State;
(b) rupees ten thousand if the agency is operating in more than one but up to five districts of a 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
(c) shall be subject to such conditions as may be prescribed.