Colin L
Tour Winner
Note 3 to Rule 20-7c says that if the player incurs a penalty for playing from a wrong place, there is no additional penalty for
- substituting a ball when not permitted
- dropping a ball when the Rules require it to be placed, or placing a ball when the Rules require it to be dropped
- dropping a ball in an improper manner, or
- a ball being put into play by a person not permitted to do so under the Rules.
So, for the player in question, there is no additional penalty strokes for placing the ball at the wrong spot.
I think you have this the wrong way round. The player who picked up his dropped ball and dropped it again is penalised 2 strokes under the general penalty for Rule 18 but is not further penalised. In other words he is not penalised 1 stroke for lifting his ball and then a further 2 strokes for failing to replace it resulting in his playing from a wrong place. It's all covered by Rule 18 without recourse to 20-7.