PRIVATE SECURITY AGENCIES (REGULATION) ACT, 2005
1.
PRIVATE SECURITY AGENCIES CENTRAL MODEL RULES, 2020
FORM
FORM
FORM
Private Security Agencies (Regulation) Act, 2005
[29 OF 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 Republic of India as follows:
Short title, extent and commencement.
1. (1) This Act may be called the Private Security Agencies (Regulation) Act, 2005.
(2) It extends to the whole of India 1[***]
(3) It shall come into force on such date2 as the Central Government may, by notification in the Official Gazette, appoint.
Definitions.
2. In this Act, unless the context otherwise requires,
(a) “armoured car service” means the service provided by deployment of armed guards along with 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;
(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 provision of armoured car service;
*Dated 23-6-2005.
1. Words “except the State of Jammu and Kashmir” omitted by the Jammu and Kashmir Reorganisation Act, 2019, w.e.f. 31-10-2019.
2. With effect from 14-3-2006 vide Notification No. S.O. 317(E), dated 15-3-2006.
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(g) “private security agency” means a person or body of persons other than a government agency, department or organisation 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.
COMMENTS
CASE LAWS
Employer Liability for Provident Fund Contributions - The Supreme Court addressed the applicability of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, to Panther Security Service Private Limited, a private security agency registered under PSARA. The agency argued it was merely a facilitator for client-hired security personnel. The Court ruled that, as per section 2(g) of PSARA, the agency is legally the employer, responsible for training, supervision, and wage disbursement to guards, and thus liable for provident fund contributions under the EPF Act. The appeal was dismissed, reinforcing that security agencies employing more than 20 personnel are subject to EPF regulations. – Panther Security Service Private Limited v. Employees’ Provident Fund Organisation AIRONLINE 2020 SC 873.
Applicability of EPF Act to Private Security Agencies - The Supreme Court considered whether Panther Security Service Private Limited, a private security agency, was covered by the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act). The agency argued it only facilitated the provision of guards (chowkidars) to clients, who paid them directly. However, the Court ruled that as per section 2(g) of the Private Security Agencies (Regulation) Act, 2005, the agency was responsible for training and deploying security guards, making it their employer. Thus, Panther Security was liable for provident fund contributions under the EPF Act, as the payments were routed through the agency, aligning with EPF Act requirements. – Panther Security Service Private Limited v. Employees’ Provident Fund Organisation AIR 2021 SC 42.
Appointment of Controlling Authority.
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 as that Government considers necessary.
Persons or Private Security Agency not to engage or provide private security guard without licence.
4. No person shall carry on or commence the business of private security agency, unless he holds a licence issued under this Act:
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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.
COMMENTS
SECTION NOTES
4.1 Mandatory Licensing for Private Security Agencies
Requirement of a Licence: Section 4 of the Act makes it mandatory for any person or entity to obtain a licence under the Act before initiating or continuing the business of a private security agency.
The term private security agency is defined under section 2(g) of the Act and covers any person or body of persons, excluding government entity, engaged in providing private security services.
The definition spans various services, including the training of security guards and supervisors, as well as providing guards to business undertakings, company, persons or property.
Transitional Provision for Existing Agencies: The person carrying on the business of private security agency before the enactment of this Act are granted a transitional period of one year from the commencement date of the Act. This period allows them to continue operations temporarily without a licence.
Continuance of existing agency pending disposal of application: The proviso to section 4 provides that if an agency submits a licence application within this one-year period, it is permitted to continue its business until the application is processed and a decision is made.
4.2 Restriction on Providing Security Services Abroad
The second proviso to section 4 clearly prohibits a private security agency from providing security services outside India without first obtaining permission from the Controlling Authority.
The Controlling Authority is further required to consult the Central Government before granting such permission.
According to section 2(b), Controlling Authority refers to the authority appointed under Section 3(1) of the Act.
Section 3(1) mandates the State Government to appoint, the Controlling Authority through an official notification.
The controlling authority, so appointed must be of a rank not lower than that of a Joint Secretary in the Home Department or an equivalent position.
4.3 Penalty for Contravention
Section 20(1) provides for punishment for any person who engages in private security business without obtaining a licence as mandated by section 4.
The Punishment includes:
S. 6
Imprisonment: That may extend up to one year; or Fine: That may go up to ` 25,000; or Both imprisonment and a fine.
CASE LAWS
Quashing of Blacklisting Order Due to Non-Compliance with Natural JusticeThe Delhi High Court addressed the three-year blacklisting of Well Protect Manpower Services Pvt. Ltd. by the Delhi Development Authority (DDA) for failing to provide training certificates for guards under the Private Security Agencies (Regulation) Act, 2005 (PSARA). The DDA had relied on an Office Memorandum that permitted blacklisting only upon conviction under the IPC or the Prevention of Corruption Act. Noting the petitioner had not been given notice of this reliance, the Court held the blacklisting order violated principles of natural justice. It quashed the order, allowing the DDA to reissue a show-cause notice and adhere to procedural fairness. – Well Protect Manpower Services Pvt. Ltd. v. Delhi Development Authority AIR 2023 Delhi 97.
Eligibility for licence.
5. An application for issue of a licence under this Act shall only be considered from a person after due verification of his antecedents.
COMMENTS
CASE LAWS
Exemption from License Requirement for Non-Security Manpower Contracts - In this case, KBS Security Agency contested the issuance of a new tender for manpower services by Dr. B.R. Ambedkar University, claiming entitlement to contract renewal based on past satisfactory performance. The Madhya Pradesh High Court dismissed the petition, clarifying that the new contract, involving roles like computer operators, electricians, and drivers, did not mandate a PSARA license as these positions fall outside the scope of the Private Security Agencies (Regulation) Act. The court affirmed that only services directly related to security operations require PSARA compliance, allowing the university to proceed with the tender unimpeded. – KBS Security Agency v. Dr. B.R. Ambedkar University of Social Sciences AIRONLINE 2019 MP 35.
Inconsistent Findings in License Denial Order Invalidated - In this case, Ganpat Sadvarte challenged a statutory order denying him a license under section 5 of the Private Security Agencies (Regulation) Act. The Madhya Pradesh High Court noted that the order contained contradictory findings—one paragraph stated that the petitioner failed to meet attendance requirements, while another acknowledged his presence. Citing the Supreme Court’s directive in Mohinder Singh Gill v. Chief Election Commissioner, the Court emphasized that statutory orders must be self-sufficient and coherent in reasoning. The contradictory nature of findings invalidated the order, and the case was remitted to the Appellate Authority for reconsideration. – Ganpat Sadvarte v. State of Madhya Pradesh AIRONLINE 2018 MP 643.
Persons not eligible for licence.
6. (1) A person shall not be considered for issue of a licence under this Act, if he has been
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(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.
COMMENTS
SECTION NOTES
6.1 Grounds of Ineligibility for Individuals
Sub-section (1) states grounds on which a person becomes ineligible for consideration for issue of license under this Act.
Company-Related Offences and Insolvency (Clause (a)):
An individual convicted of offences related to the promotion, formation, or management of a company—especially in cases of fraud or misfeasance—is disqualified.
Additionally, any undischarged insolvent is ineligible.
Criminal Conviction (Clause (b)):
Any person convicted for an offence punishable with imprisonment of two years or more is barred from obtaining a licence.
National Security Concerns (Clause (c)):
Any person associated with banned organizations or those posing a national security or public order threat is ineligible; or here is information about such a person indulging in activities which are prejudicial to national security or public order.
Dismissal from Government Service (Clause (d)):
Any person dismissed or removed from government service on grounds of misconduct or moral turpitude is ineligible.
6.2 Grounds of Ineligibility for Companies, Firms, and Associations
Under section 6(2), the company, firm, or association entity is regarded ineligible for issuance of licence under the Act if: it is not registered in India, or it is having a proprietor or a majority shareholder, partner, or director who is not a citizen of India.
PRIVATE SECURITY AGENCIES (REGULATION) ACT 2005 WITH PRIVATE SECURITY AGENCIES
CENTRAL MODEL RULES 2020 – BARE ACT
WITH SECTION NOTES
AUTHOR : TAXMANN'S EDITORIAL BOARD
PUBLISHER : TAXMANN
DATE OF PUBLICATION : FEBRUARY 2025
EDITION : 2025 EDITION
ISBN NO : 9789364558532
NO. OF PAGES : 60
BINDING TYPE : PAPERBACK
DESCRIPTION
Private Security Agencies (Regulation) Act 2005 with Private Security Agencies Central Model Rules 2020 [Bare Act with Section Notes] by Taxmann is an authoritative legal compendium compiling the full text of the Act and the Central Model Rules 2020. Enhanced with detailed section notes, case law commentary, and practical explanations, it is an indispensable resource for understanding the regulatory framework governing private security agencies in India—from definitions and licensing to enforcement and appeals. This book is intended for the following audience:
• Legal Practitioners and Academics
• Industry Professionals
• Government Officials & Regulators
• Policy Makers
The Present Publication is the 2025 Edition, covering the amended and updated text of the Private Security Agencies (Regulation) Act [Act No. 29 of 2005] with Private Security Agencies Central Model Rules 2020, with the following noteworthy features:
• [Complete Bare Act Text] Presents the full text of the Act alongside the updated Central Model Rules 2020
• [Updated & Amended] Reflects the latest legal developments and judicial trends
• [Section Notes & Commentary] Offers detailed notes, explanations, and case law references to clarify statutory language and judicial interpretations
• [Annotated Provisions] Provides in-depth analysis of key sections such as licensing requirements, eligibility, disciplinary measures, and the appointment of Controlling Authorities
• [Comprehensive Forms] Includes all prescribed forms (Forms I–XI) for applications, verifications, affidavits, appeals, and record maintenance, serving as a practical guide for compliance