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Daughter of a German citizen entering Germany using visa is misdemeanor and could be fined 5000 Euros?

Background:

I have become a naturalized German citizen and my daughter was born on October 2020 in India . I am planning to bring my wife(Indian citizen) and daughter with Indian passport and a visa for Germany(Family reunion).

Consulate #1

I wrote to one of the German Consulate and they wrote this:

"As a German citizen, she would be required to enter Germany on a German passport. Otherwise she (or you, while she is this young) would be commiting a misdemeanour that you could also be charged for (up to 5000 euros)".

Consulate #2

We had to move to another city and we wrote to that consulate and they said this:

"Due to the COVID scenario, your daughter could be given a visa for the first time of her visit to Germany alone."

The response from the second consulate is promising.

Ideal Scenario:

Our goal is to let her maintain the Indian passport as long as possible. The reason we prefer this is because we are planning to go back and settle down in India in the next years and it will be advantageous for her to have this. Right now , for work, i have to bring her to Germany for 2-3 years.

And, maintaining the Indian passport provides her the flexibility as she could in future decide to take German citizenship is felt like that.

Question:

  1. is 5000 euros the worst case that i am looking at if i am bringing my daughter on a visa rather than using a German passport?
  2. Also, once she arrives on visa, how likely at the city registration that people are going to find out that she needs to be registered as a German national and not Indian?
submitted by /u/cs10201
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source https://www.reddit.com/r/immigration/comments/nd392l/daughter_of_a_german_citizen_entering_germany/
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