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Gregory Michael St. Andre, of Warren, Michigan, faces charges of incest and third-degree criminal sexual contact after a DNA test revealed he was the child's dad.
An investigation was launched when the victim's mum went to police after the baby was born in February, claiming she and other relatives suspected ongoing sexual abuse.
The victim's aunt, Michelle Truszkowski, told FOX 2: "This is a horrible, horrible thing that happened.
"It's just madness. It's tearing our whole family apart.
"We've been through this for years. It started years ago."
She added: "This is an incest case and it's disgusting. And he shouldn't be walking around."
St. Andre's wife - who is filing for divorce - said she believed the abuse went on for more than five years, but claimed she was unable to get help from law enforcement officials, the station reported.
He initially told police that he never had sex with his daughter, claiming he instead gave her a cup of his semen and "doesn't know what she did with it," according to police.
Comment: This is one for the books, folks.
Investigators, however, said text messages sent between St. Andre and his daughter contradict his claim.
St. Andre was initially charged earlier this month and was released after posting $5,000 bond, the Detroit News reports.
He returned to court on Monday after a judge ordered a DNA test in the case and his bond was increased to $60,000, court records show.
The judge also ordered St. Andre to not have contact with his daughter if he's released again from custody.
The woman's relatives claim that St. Andre has been contacting the victim and her boyfriend by phone and social media.
Prosecutors wanted St. Andre's bond to be revoked, but defence attorneys said he has "gotten the message" to stay away from his daughter.
He's reportedly due back in court on June 26.
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