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The one handbag rule should be mentioned in the ticket and boarding pass.
Ministry of Civil Aviation decided to review the move by airlines after passengers complained on social media.
Once India's largest private carrier, Jet Airways had more than 16,000 employees and flights to dozens of international destinations.
The distressed airlines, which had 115 aircraft, started suffering losses and could not pay the employees from last December.
The crisis at Jet has deepened in recent weeks as lessors have started applying to deregister planes.
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