Private Security Agencies (Regulation) Act,2005
Section 13. Cancellation and suspension of licence
(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 an 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 permitting 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 wilfully 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 indisciplined;
(iv) were found to be involved in committing crimes; or
(v) 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 cancelling of licence on any of the grounds mentioned in subsection (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.