Exit permit and penality fee for British baby born in India

Hi All,

Me and my husband are British citizens and hold OCI. Our daughter is born in India in July 2018 and she got her British passport towards the end of December 2018.

We applied for exit permit from India for her on 12th February 2019 and the response we got is we have to pay an amount of 11,660 INR for new visa fee and 28800 INR as penalty fee totalling 40,400 INR. New visa fee sounds fine but what surprised me is when I spoke to frro team over the phone they said my daughter is British citizen from day 1 and even she got British passport on 28th December there is a penalty fee calculated from July it self. It doesn't sound correct me especially when the penalty fee is so high? Has anybody come across this?

Thanks

You can be a citizen without holding a passport, their view sounds correct.