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Hi, as far as my knowledge goes, if you travel to India on your Indian passport after acquiring a foreign nationality, you need to pay 90 90-day penalty. There is no penalty included for surrendering your Indian passport late if you do not use it for travelling or any other purpose.
Based on my understanding of Indian laws and the strictness towards dual citizenship in India, you should surrender your Indian passport within three months of acquiring foreign citizenship. If you fail to do so, you may face legal issues and penalties. However, if you do not plan to visit India in the future or apply for an OCI card, you do not need to do so. However, if you want an Indian visa or an OCI card, the application form will show that you are an Indian citizen, and then the officer will know that you have not applied for a surrender certificate till now. Also, the penalty increases with time.
I don't think it matters or that there are any penalties for not surrendering your Indian passport after getting foreign citizenship if you do not use your Indian passport. If you use your Indian passport, it is subject to Indian law. Like the American laws, if Indian laws are also the same, then you can be put in jail and deported from the country, and also get permanently banned from traveling to India.
You did not need to pay any penalties for not surrendering your Indian passport after acquiring foreign citizenship if you do not use it for travelling. I hadn't surrendered my Indian passport for six years and travelled to India on an e-visa using my passport from another country. When applying for an OCI card, you can surrender your Indian passport without facing any issues.
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I also surrendered my Indian passport after three years, and in those years, I also visited India twice using my US passport and applying for an e-visa without any issues. Also, at the time of surrendering, I did not pay any penalty fee as I did not use my Indian passport.