Technical inspections of the cars confirmed irregularities in relation to the regulations.
Officials discovered modifications were made to the Dallara-supplied energy management system covers and cover-to-A-arm mounting points with unapproved hardware.
Per the IndyCar rule book, Dallara-supplied control components must not be modified.
IndyCar Series rookie Collet qualified 10th and made it into the Top 12. Harvey, meanwhile, was 29th.
Collet and Harvey have been sent to the back of the grid in 32nd and 33rd respectively.
They will also forfeit their pit positions and will select their pit boxes after the rest of the field has an opportunity to adjust accordingly.
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In addition to the grid demotion, Collet has had his three bonus points from making it into the Top 12 stripped.
The net result is that Chip Ganassi Racing’s Scott Dixon and Rinus VeeKay of Juncos Hollinger Racing will earn points for 10th and 11th place respectively.
Rahal Letterman Lanigan Racing driver Takuma Sato is ineligible for bonus points given he did not participate in Top 12 qualifying.
The penalties can be contested, with neither team having said whether it will contest the sanctions.
Practice at the Indianapolis 500 continues on Tuesday at 3am AEST.
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