HANDS UP and surrender your Indian Passport and pay!

[Beebop]

Can someone pls help me with this:
I previously held an Indian passport. I was naturalized in March 2006 and got my British passport in April 2006. I went to the Indian embassy in London (Aldwych) in Jan 2007 as I needed to travel to India. They issued me with a 5 year multiple visa for India and made no mention of retaining my old Indian passport and in fact one of the ladies said I should keep it as a souvenir! Since then, the OCI and PIO's have all come into effect and I would like to apply for an OCI. I now need a surrender certificate.
From what I gather I will be fined £145 for retaining my Indian passport even though I have never used it. My Indian passport expired in June 2010.
So, my question is, is there any way of avoiding this ridiculous fine? I can't believe I was even in the embassy and used my old Indian Passport for them to issue me with a visa and no one said anything to me! aaarrggghhhhhh. I seriously can't afford £145 plus £175 for an OCI!