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Renunciation/Dual Citizenship very complicated please help

I have a very complicated passport issue and am trying to find some advice. I have two passports, though I am aware it is illegal to have dual citizenship in India. I was unaware of one of the passports, because my father got it for me when I was younger, the same time I moved back to India. I became aware of this passport when I was 18 and used it just to enter and leave the country. I never used it to get visas or travel, I have been using my Indian passport my whole life.

Recently I moved back to this country, to live and work. It has been no problem because I am a citizen, but I decided that I need to get an OCI card and give up the indian passport. I went to the consulate in my city, and they were very suspicious and did not seem to believe my story. They have now said that there was a law passed in 2010 regarding this, and every travel i've made since then is a violation. So I have to pay $250 per stamp, this will amount to over $2000.

I have no problem in paying, I just want to get this over with and start the process of my OCI card. I have been asking family and friends for advice, but I thought I would put it out there, on this forum too. Its a very complicated issue, but I just want to know if anyone thinks that theres a possibility the indian consulate could ban me from India? Or put me into jail when I get to india? My mum lives in India and most of my family, I need to be able to go home if something happens. I just want to make sure that as long as I pay the fees the Indians can't ban me, or say they will not give me an OCI card?

I know this is very complicated, and I have not used country names just in case. I'm 23 and working, and its not as though I've purposefully tried to keep both passports. Please can someone give some advice?
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