Private airlines collecting taxes from travellers other than the passenger service fee will be penalised and made to refund such money, Civil Aviation Minister Praful Patel told Lok Sabha on Thursday.

"We will not only penalise but make them refund the money collected on account of tax," he said replying to supplementaries on "cartelisation by Airline companies" during Question Hour.

Patel made it clear that the government did not regulate the air fare levied by Airline companies. The government only levies Rs 221 as passenger service fee which is used for security of airports and to cover other related expenses, he said.

Patel said air fares have reduced sharply owing to competition.

He said there was no probe by the Monopolies and Restrictive Trade Practice Commission into alleged attempts at cartelisation in the civil aviation industry by private Airlines through mergers.

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