maheshr - 6:24 pm on Jun 7, 2012 (gmt 0)
I understand you think that is the problem. But, IMO Google is not "penalizing" you for having those links. They are simply devaluing those links (which may appear like a penalty.) and also will cause your rankings to drop.
I beg to differ. One of my site was on around #75 th position for a low competition keyword without any backlinks. Then I built around 10 k backlinks and it came into front page of google #6 th position and stayed there for some months. Then I got WMT unnatural link message and after 1 week my site is showing around #650+ th position for that low competition keyword. So it looks like there is clearly a penalty exists for those links.
btw, I deleted the whole pages from that website except homepage 1 week ago. But I deleted the content from the homepage and made it a blank page. No theme, no word or whatsover. But today it is on the #174 th position with zero content. It was beyond #650 since 2 months. So it looks like it imrpoved with zero content. Can anyone tell me what is going on?