Section 5 in The Private Security Agencies (Regulation) Act, 2005
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.
Title: Renewal of licence
(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 suchform as may be prescribed and shall be accompanied by the requisite fee and other documents required under sections 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.
Title: Conditions for commencement of operation and engagement of supervisors
(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 of 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.