The following incident is even more stranger. My collegue got US passport in 2001-2002. He has a Indian PP valid until 2008. He applied and got an India Tourist visa on his US passport in 2002. He has never traveled on his Indian PP after getting US citizenship.
Now fast forward to 2010, applies for SC with $20 fees on end of August. Consulate opened the app on Oct 12th or so. In December he gets a call from the consulate asking him to pay $250 penalty for not cancelling his Indian PP. It seems that there was a rule change on Oct 1st that you have to pay the fine, if you have received US citizenship before 2005 but did not get his Indian PP canceled.
Even though he applied before Oct 1st, the consulate did not open the app received on August and he had to pay.
Now fast forward to 2010, applies for SC with $20 fees on end of August. Consulate opened the app on Oct 12th or so. In December he gets a call from the consulate asking him to pay $250 penalty for not cancelling his Indian PP. It seems that there was a rule change on Oct 1st that you have to pay the fine, if you have received US citizenship before 2005 but did not get his Indian PP canceled.
Even though he applied before Oct 1st, the consulate did not open the app received on August and he had to pay.