The procedure isnt incorrect. This isnt someone dropping on the wrong side of a path, repairing a pitch mark off the green before they play etc. The procedure is followed in that the player considers it virtually certain that the ball crossed into the hazard, and so is going to take relief from the red stake line for a penalty shot.As above, in stroke play, other players have a responsibility to protect the field (all the other players in the competition who expect the competition to be played by the Rules). In this case, other players should tell the player that they believe the procedure was incorrect and that they will bring it to the attention of the Committee. The Committee will then investigate and make a ruling.