My situation was slightly different. I became a British citizen and delayed my surrender application because I wasn't aware of the requirement immediately.
When I eventually submitted the application, the staff reviewed my naturalization date and passport details. Fortunately, I had never used the Indian passport after acquiring British citizenship.
From what I learned, India does not recognize dual citizenship, so the Indian passport effectively becomes invalid once foreign citizenship is acquired. The authorities may review travel history if there is a question about whether the passport was used after that date. Requirements can change, so it's always worth checking the latest consular guidance.
I completed my surrender certificate application in Toronto last year after becoming a Canadian citizen.
During the process, I had to provide my Canadian citizenship certificate, Canadian passport, and my last Indian passport. The application asked for dates related to acquiring foreign citizenship, so the authorities could determine whether the Indian passport had been used afterward.
Based on my experience, simply possessing the passport for a short period after naturalization was not the main issue. The bigger concern was traveling on it after obtaining foreign citizenship. I was advised to surrender it as soon as possible and avoid using it for any travel.
My surrender certificate was issued without any penalty because I had not traveled on the Indian passport after naturalization.
Yes, if you surrender your Indian passport delay or after some time of getting a foreign citizenship, then you will have to face some charges for violating the passport rules. For not surrendering the Indian passport for 3 years and traveling after getting your foreign passport, then you are liable to pay a penalty of 10,000/- INR under section 12(1A), for the person who have not surrendered their passport and travelled more than one time with a foregin passport need to pay penalty of 10,000 each for the travel on Indian passport under the section 12(1A)of the passport rule.
Indian passport holders need to surrender their passports on time. If they fail to do so after acquiring foreign citizenship, then they will face some serious consequences under the Indian Passport Act, 1967, and need to pay penalties and end up in jail. So it is better to surrender your Indian passport prior to acquiring foreign citizenship.
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I went through this process in Australia.
One common misunderstanding is the difference between retaining the passport and actually traveling on it. Several people in local NRI groups believed there was an automatic fine for not surrendering the passport immediately, but that wasn't always how their cases were handled.
The key factor appeared to be whether the Indian passport had been used after acquiring foreign nationality. Friends who had no post-naturalization travel generally had straightforward surrender certificate applications.
If you're planning to apply for OCI later, I would recommend completing the surrender certificate process first because you'll usually need proof of surrender when applying for OCI services. Requirements may vary by mission, so check the latest instructions from your jurisdiction.