“IT IS NOT ENOUGH TO TAKE GOOD DECISIONS AND MAKE GOOD CHOICES. IT IS NECESSARY TO TAKE HEED AND COMPLY WITH WHATEVER YOU PLAN”
Facility Management is on the fast developing business in India. It involves most critical services of Security & Housekeeping. In India, very few customers are concerned about compliance. This would not be among their top concerns of what we describe as fraud and compliance risks. The other concerns are also about bribery and corruption at closing of service providers & lack of knowledge about standard compliances those include Security License (PSARA); PF, ESIC & Labour wages acts etc. or on –going changes in government regulations/ taxes.
In Facility Management business, companies generally enter a market with causal approach on compliances. Large numbers are absolute fraudulent entities running such a critical manpower business that includes “Private Security Guard” space with just a ‘Shop-Act’ document in place. These fraudulent numbers may increase if customers despite being aware of non- compliant status encouraged such entities to deliver security & housekeeping business in their respective work place and they kind of stay behind in the back seat – until they discover something is wrong – and they end up with a huge gap at the local management level about following impact :
1. Vide section 4 of the private security Agencies (Regulation) ACT 2005; Persons or Private Security agencies are prohibited from carrying on or commencing the business of Private security agency unless they hold a license under the ACT. Consequently, by section 20 of the ACT any person carrying on or commencing the business of Private security agency without holding the license shall be punishable with the imprisonment for the term which may extend to one year, or with fine which may extend to twenty five thousand rupees, or with both.
2. Any agreement/contract of such person or Private security agency (not holding any license under the ACT) with any other person/firm/society/company/institution for deployment of the security Guards is unlawful being forbidden/prohibited by the ACT.
3.Such Agreement/contract made with willful concealment about the factual position of unlawful/unauthorised Private security agency are fraudulent in nature and are unlawful/illegal & not valid contract as per section 10 of Indian contract act 1872.
4. An illegal agreement/contract is the one which is expressly or implicitly prohibited/forbidden by law/Act/statue, or to which law can declare it illegal or void.
5.Sec 17 of the Indian contract ACT defines the contract as fraudulent if is the result of active concealment of a fact by one or having knowledge or belief of the fact( e.g. one party not holding Private security license but signing contract for providing security guards with the other having its knowledge, against the law/Act.)
6. Both the parties signing such illegal contracts are answerable for their undue gains violating the ACT/law of the land as & when required to explain their role in signing such contracts on receipt of complaint or verification of such contracts by the competent authority.
HPFMS IS COMPLIANT ON ALL NORMS, LICENSES AND REGULATIONS.
Being compliant on all norms, licenses & government regulations is the prime imperative in HPFMS. Integrity, Ethics & Transparency is the key fundamental blocks of HP Facility Management Services Pvt. Ltd. HPFMS is fully complaint on every single compliance parameter. We acquire SECURITY LICENCE (PSARA), MOM, MOA, PF, ESIC, PAN, TAN, CST, ST-2, COI, SHOP ACT, VAT, PTRC, PTEC, LWF, SECURITY TRAINING CERTIFICATE & others. We emphasize on complying on every single parameter within standard timelines. In Facility Management Business, It’s equally a vital responsibility of clients to place their work order with the fully complaint companies to mitigate any risk at their end.