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Yes, the government of India has imposed a penalty for the delayed surrender of an Indian passport. If an Indian citizen is surrendering an Indian passport and acquiring a foreign citizenship, then they need to surrender their passport on time. If they are delayed, then they need to face charges and penalties for violating passport rules, and they can go to jail for more than 3 years.
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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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.