A legal heir certificate can be obtained by anyone who wants an order from the court wrt the heirs of the immovable property. Therefore engage an advocate who will file a suit for it. Without it it cannot be determined who are your friends father's legal heirs and the bank cannot disburse the loan.

Once sale deed has been executed duly stamped and registered buyer would be absolute owner of property 

you need succession certificate from Bombay high court to collect sale proceeds from buyer 

3) it takes around 6 months 

4) legal heir certificate would not serve the purpose 

Legal heir certificate is issued by Tehsildaar. Tell the buyer to get the payment release otherwise hold the delivery of possession.

They only provide them to government employees. Is it true ? - False, every citizen is entitle to LHC. Complain to collector. Issues in 4 5 days. 
Get this in writing from Tehsildaar that LHC certificates issues to govt. employee only. Give application to bank with an affidavit declaring who are legal heirs and enclose copy of letter of Tehsildaar.
And cheque/DD shall issue on joint name of legal heirs. 

1. Legal heir certificate is not a very difficult task to obtain.

2. on the basis of an affidavit one can get a certificate notarised from the local Notarian.

3. However form the first class magistrate as well such affidavit can be affirmed.

- Yes, after the death of father , for issuing the payment in favour of him , now it is required to submit the legal heir certificate in the bank.

- It is wrong to say that legal heir certificate issued to govt. employees

-  Being the legal heir , you are eligible to get the same legally. 

- Submit an application with the name of all the legal heirs of your father along with Death certificate of father, Identity proof and address proof before the office of Tehsildar/Taluk. 

- The Tahsildar is bound to issue the same within 14 days period of apply. 

If you want we can perform and service for you, to get legal heirs share certificate from court. 

You need to submit below document to apply in the court: 

• a Valid POA for legalise to apply ob behalf of all family members. 
• Passport copies of deceased or any other photo copy indentity govt proof like AAddhaar Card, Pan card, Election card.
• Death Certificate from BMC with officer stamp and seal
• And all details photo identity proof of all family members and ration card, address proof that connect relationshiop with deceased person relationship of all family members.

3 years from date of the death is ideal limitation

Dear sir,

The legal heir certificate can be given to anyone and if at all, tehsildar is rigid for it, let the bank collect the same. The time line for the same would be 10-15 days in normal working days. 

Once the proeprty was sold by a registered sale deed to the prospective buyer by the vendor, the buyer becomes an absolute owner  and the vendor's rights in the property automatically relinquishes.

Hence the bank's insistence of legal heirship certificate for the list of legal heirs of the vendor at this stage while the property already stands in the name of the buyer by a registered sale deed, is not maintainable.

The Revenue department can issue legal heirship certificate to the legal heirs of the deceased if they are having provision to issue the same to the government employees.

Now neither the bank can be convinced nor the Tehsildar, because both will be affected by ego if you take legal action on either or both of them seeking clarification or demanding your requirements.

Alternately you can prepare a family tree or genealogical tree certificate duly notarised and submit it to the bank stating that the Tehsildar is refusing to issue the legal heirship certificate to the private people other than government employees.

You cannot approach court for obtaining legal heirship certificate.

You can get succession certificate through court whereas that would not be applicable for immovable properties. 

In this situation you can file a declaration suit before court to declare the legal heirs of the deceased by a decree which would solve the problem.

The time taken for disposal of the declaration suit by court of law  cannot be predicted especially in the given Covid-19 situation.

1. For any claims /stake relating to "immovable property" of a person who died intestate (without making a will), a "Letter of Administration" is required from HC, for properties in Mumbai.

2. Succession Certificate or Legal Heir Certificate is legally not applicable for immovable properties.

Yes legal heirs Certificate will be required, file petition in court . It will take something around 6 months

your friend need to apply for succession certificate. 

To obtain succession certificate, a petition to the District Judge within whose jurisdiction the deceased person ordinarily resided at the time of his death .