1. In pagadi system, when a tenant dies in the tenanted premises, then the family members of the tenant who were living and residing with the tenant at the time of his death in the tenanted premises, automatically become deemed tenants of the pagadi flat.
2. if your elder sister was living in the pagadi flat at the time of your dad's demise in the pagadi flat, then she is entitled to tenancy right in the flat.
3. however if she had already married an shifted to her matrimonial house before the demise of your father, then she cannot claim any tenancy rights.
4. even if she was living in the tenanted premises at the time of demise of your dad and later on she gets married and moves to her matrimonial house, she loses her claim over the tenancy right
5. in your case, it will be altogether a new transfer of tenancy right and not transfer by devolution i.e. transfer of tenancy which happens due to demise of original tenant in favour of the legal heir/s
6. so your landlord is entitled to demand transfer fee from you
7. strangely there is no maximum limit specified in the rent act upto which the landlord can charge transfer fee
8. however as per custom, the landlord can usually charge at the most 30% of the property value towards the transfer fee
9. so you will have to negotiate hard with your landlord
10. if nothing fruitful comes out, your father still remains tenant of the flat till he is alive.