Kerala Security Industry Scam: No PASARA, No Rights

 

Unlicensed Security Agencies in Kerala & the Silent Crisis of Labour Exploitation

By : Vijesh Nair

Date:26/11/2025

The Dark Reality Behind Unlicensed Security Agencies in Kerala: Labour Exploitation & Weak Enforcement

Kerala has witnessed rapid growth in the private security sector over the past decade. Malls, apartments, hospitals, banks, and commercial establishments increasingly rely on security service providers for round-the-clock protection. However, behind this booming industry lies a troubling reality—a large number of security agencies operating without a valid PASARA licence, exposing thousands of security guards to unsafe and unfair working conditions.

What is PASARA, and Why Does It Matter?

The Private Security Agencies Regulation Act (PASARA) is designed to ensure that:

• Security companies operate legally

• Guards are properly trained

• Employees receive minimum wages and statutory benefits

• Background verification and character certificates are mandatory

• Service standards and safety protocols are maintained

When an agency operates without PASARA compliance, it bypasses all safeguards meant to protect both clients and employees.

The Growing Problem: Unlicensed Operations

Industry insiders report that several security providers continue to work without proper PASARA registration. These companies often offer unusually low rates, attracting clients who are unaware of the legal requirements.

But the real cost is paid by the workforce.

Human Exploitation Behind the Scenes

Many guards working under unlicensed companies face:

• Extremely low wages below legal minimum

• No PF, ESI, or statutory benefits

• 12–16 hour shifts without overtime pay

• No training or safety equipment

• Delayed or inconsistent salary

• Threats or penalties for demanding rights

These workers, often coming from financially vulnerable backgrounds, tolerate exploitation because they have few alternatives and little awareness of their rights.

Why Is Enforcement Weak?

While the Labour Department and other authorities are responsible for monitoring compliance, many frontline workers allege that enforcement remains lax. According to industry discussions, corruption and under-table payments may contribute to the lack of action against violators.

Instead of strict inspections and licence verification, many unlicensed agencies continue to operate freely, creating an uneven playing field where compliant companies struggle to compete.

Impact on the Industry

The presence of illegal security service providers affects the entire ecosystem:

• Legitimate PASARA-licensed companies suffer due to unfair price-cutting

• Clients unknowingly assume risk when hiring unregulated providers

• Workers face exploitation without a platform to complain

• Quality of security services decreases, affecting public safety

A Call for Stronger Oversight

It is crucial for government departments, especially the Labour and Home Ministries, to:

• Conduct regular inspections

• Verify PASARA licences before allowing deployment

• Ensure timely payment of wages and statutory benefits

• Punish companies violating worker rights

• Create awareness programs for security guards

Clients Also Need Awareness

Many businesses hiring security services do not check:

• Whether the agency has a valid PASARA licence

• If the guards are trained

• Whether salaries and legal benefits are paid

Simple verification can prevent legal complications and promote fair labour practices.

Conclusion

Kerala’s security industry plays a vital role in public safety, but it must operate fairly, legally, and ethically. The exploitation of guards by unlicensed agencies is not just a regulatory failure—it is a humanitarian issue.

Only with strict enforcement, informed clients, and protection of worker rights can the industry progress in a way that benefits everyone.