on grand father demise children who are staying in said rental premises are deemed tenants 

2) ask landlord to transfer rent receipt in name of children 

3) if he demands money and you are unable to pay approach small causes court for declaration that you are deemed tenants 

4) in alternative negotiate with landlord to reduce amount demanded by him 

small causes court is court which deals exclusively with tenancy disputes in mumbai 

2) you can transfer rent receipt in x and y name . inform landlord that you are senior citizens with no savings no source of income .

3) on X demise landlord will again ask for money to transfer in name of his legal heirs 

he can transfer tenancy rights in favour of 2 sons but landlord are reluctant to do so 

cant mention fees on this forum . seek phone consultation from website 

To answer your query you first need to understand how succession of tenancy rights operate

When a tenant dies, the tenancy goes firstly to any family member who was living with the tenant at the time of his demise and if there is no such family member then the tenancy rights will be succeeded by any legal heir of the deceased tenant 

So in case of pugdee properties the succession is a bit different 

The first preference is given to the family member and if there is no family member then to any heir of deceased tenant 

The provision has used the word 'family member' and 'legal heir ' which is in singular and NOT family 'members' or legal 'heirs'. 

So under the law the landlord can transfer the rent bill to any one family member or legal heir 

However in most of the cases there are more than one family members or legal heirs 

In such cases all the several persons will become entitled to joint tenancy 

So in your case the children of your late GF would become joint tenants 

However you need to understand that when it comes to succession,  a family member living with the tenant (in the sense he has been living with the tenant for quite a long time and considers the pugdee property as his home) would exclude the legal heir/s

In your case you say that your uncle is living in the pugdee house and I'm assuming that he was living in the house even prior to the death of your GF

So as per the statutory definition of tenant in the rent act as explained above, your uncle being the family member would exclude the other heirs of your late GF from claiming any tenancy right 

In your case the Landlord is saying that he will recognize any one heir from among the several heirs (which also includes your uncle) to be the successor tenant 

However the choice of the landlord may not be agreeable to the other heirs 

In such a case the disagreement between the landlord and the heirs of deceased tenant will have to be decided by the small causes court by filing a declaration suit known as RAD which takes years to resolve 

So you either have the issue decided by the court or just don't do anything at all and maintain the status quo 

However complications will arise when the building goes for redevelopment 

For the redevelopment only the occupant of the premises is considered. So your uncle who is occupying the pugdee house will be considered as an eligible occupant by BMC/MHADA and the landlord/builder will allot the new rehab flat to that occupant 

The landlord/builder will also have to register a permanent alternate accommodation agreement with the person who is entitled to claim the tenancy of the house 

So if the builder registers the PAAA with your uncle then this will lead to disputes as the other heirs would also want to have their names mentioned in the paaa and to be allotted the new rehab flat in place of old premises 

So in order to avoid all this it is better that all the heirs enter into some sort of family understanding or arrangement as to who should succeed to the tenancy and be entitled to the new rehab flat when the building goes for redevelopment. If there is no agreement then the matter will have to be decided by the court 

As for the transfer fee the landlord cannot legally charge as there is a bar under the rent act. However many landlords do charge transfer fee in case of succession (which is less than what is applicable for a new transfer ) and people do pay such lesser transfer fee in order to have things sorted amicably and to buy peace 

As regards charging of the transfer fee again when the successor tenant dies and for issuing rent bill to his heir, again that is not permitted by law, but there can be some sort of understanding arrived at with the landlord, particularly when there are several heirs/claimants

If there is only one heir then nothing is required to be done as that heir would be statutorily recognized as the successor tenant basis the definition of tenant in rent act 

Please note I don't provide free legal consultation. 

In the Pagdi system, when a tenant who owns a property dies, their legal heirs, who were residing with them at the time of death, can inherit the tenancy rights. 

These heirs can then request the landlord to issue a new rent receipt in their name. 

The landlord is obligated to recognize these legal heirs as the new tenants, provided they were residing with the deceased tenant at the time of their death. 

If all the legal heirs agree to get the name transferred to one among them, then the other legal heirs can give NOC  for this name transfer after which the landlord can transfer it to the chosen legal heir.

If you all feel the amount demanded is very exorbitant, then negotiate the same adn settled down to a lesser amount now itself before the redevelopment takes place to safeguard your interests without being subjected to any stretched litigation in this regard in future.

1. First of all try to get the name transferred to one of the legal heirs of the deceased tenant by a compromise among the legal heirs to choose one among them subsequent to which the name transferred tenant may permit his sibling or the other legal heir to live in that place either on an arrangement or by paying a nominal rent also.

2. Small cause court is another regular court where such cases are being tried. You can approach a local lawyer to find out the solution through court (small cause), but remember that the litigation through court will be more expensive in the long run because it may run for two to three years or even more than that, hence the time, money and energy wasted would be more than the negotiated final amount with the landlord.  You can take a wise decision at right time.

3. The same process of transfer has to be followed subsequently also.

Therefore all the legal heirs can decide and give NOC  to any chosen legal heir from their next generation legal heirs in case you want to avoid this situation.

1. The rental receipt can be transferred to two legal heirs names also 

2. You can choose any lawyer of this forum to handle your case or one from outside also, you can consult the chosen lawyer through an option available in this forum and decide about next course of legal action.

Some additional information for you:

The Maharashtra Rent Control Act, 1999, governs the transfer of tenancy rights in the Pagdi system, which states that 

(i)  The key factor determining inheritance is whether the legal heir/s was residing with the deceased tenant at the time of death

(ii)  The landlord must acknowledge the legal heir as the new tenant and issue a new rent receipt in their name. 

(iii)  The landlord cannot charge extra fees for transferring the tenancy rights to a legal heir. 

(iv) Upon the demise of the tenant, the legal heir can succeed on the strength of definition of tenant as provided under Section 7 (15)(d). The provisions of this clause for transmission of tenancy shall not be restricted to the death of the original tenant, but shall apply even on the death of any subsequent tenant, who becomes tenant under these provisions on the death of the last preceding tenant.
(v) While tenancy rights are inheritable, the Pagdi system does not automatically grant ownership to the legal heirs. 

(vi) Landlords may also have rights and interests to protect, and legal proceedings can be initiated to resolve disputes. 

For transfer you need to pay premium to the landlord which is mutually agreed but not the 33 percent which is charged when transfer is done to outsider other than legal heir

Yes, the rent receipt (Bhada Chitti) can legally be transferred in the names of both X and Y if they were living with your grandfather at the time of his death. The Maharashtra Rent Control Act allows legal heirs who stayed with the tenant to inherit tenancy rights. However, landlords usually prefer to transfer it to just one name to avoid future complications. This is likely why your landlord is insisting on transferring it only to X. But from a legal standpoint, joint transfer is possible.

1. Transfer to one or more heirs (Q1 & Q1 follow-up):
   Yes, the Rent Receipt (Bhada Chitti) can be transferred in the names of one or multiple heirs (e.g., both brothers X & Y). It does not have to be only one name, as long as all parties agree. Insisting on one name alone is not mandatory or legally binding.

2. Paying black money (Scenario 1 concern):
   Avoid paying any illegal amount (“black money”) for transfer. It is risky and could lead to future disputes or financial loss. Transfers should be done legally with proper documentation and fair valuation.

3. Continue as is until redevelopment (Scenario 2):
   If transfer is complicated or costly, and tenancy is peaceful, you can continue as before—still in grandfather's name—until redevelopment happens. But understand the legal ownership remains your family's responsibility.

4. Future transfer fees after death of one heir (Scenario 3):
   If properly transferred legally now, and registered, future inheritance transfers to legal heirs do NOT require paying “black money” again. Legitimate succession and mutation will apply as per law.

5. Small Causes Court & legal help (Q2 & Q2 follow-up):

• The Small Causes Court in Mumbai handles tenancy/rent and eviction issues, not ownership transfers.

• Ownership disputes or partition suits need to be filed in civil courts.

• Legal fees vary; consult a property lawyer for an estimate based on case complexity.

You are facing an all-too-common but sensitive issue with old tenanted properties in Mumbai, where the landlord is demanding an off-the-books (black money) payment to transfer the rent receipt (bhada chitti) from your late grandfather’s name to one of his children. Here’s what the law and best practices say for each of your scenarios:

Legally, there is no requirement under the Maharashtra Rent Control Act, 1999 or previous Rent Acts that you pay any transfer fee or “black money” to the landlord to update rent receipts to the name of a legal heir. Charging “black money” for such transfer is illegal and you are not obliged to comply. After a tenant's death, all Class I legal heirs (spouse, sons, daughters, who lived with the deceased at the time of death) have a right to tenancy. Updating the name is an administrative matter. If you pay now and later need to transfer again (e.g., if the new named heir dies), the landlord may again demand money, as this has no legal basis and is not a one-time fee backed by law. This can create an endless loop of illegal demands.

As lawful heirs living in the property, you have fully protected tenancy rights under Maharashtra law, especially if the family has continuously resided there and the rent is paid regularly in the original tenant’s name. There is no maximum time limit for updating the rent receipt; the main thing is continuous possession, regular rent payment, and proof that you are heirs. Many families in Mumbai continue like this for years and are recognized as tenants for all legal purposes. At the time of redevelopment or any legal dispute (e.g., eviction suit), your continued occupation and proof of heirship will be crucial. You should keep all rent receipts, utility bills, correspondence, and family documents as evidence of your rights.

If you pay illegally now for transfer and later, the new tenant (named heir) passes away, the landlord may again demand money from the next generation or legal heirs to “transfer” the tenancy. This cycle often repeats because the demand is extra-legal and based on the landlord’s leverage, not on the underlying law. There is no guarantee or legal cap on such demands— they tend to be repeated each time there is a succession, especially in old tenanted Mumbai buildings.

Practical and Legal Recommendations:

You are NOT required to pay any “black money” to have the rent receipt transferred. You can write to the landlord requesting update of records with supporting documents (death certificate, family tree, heirship proof, address, and current rent receipts). If the landlord refuses or does not reply, you can continue paying rent under the old name and retain all proof of payment and residence. In case of pressure or threat of eviction for non-payment of this demand, you may approach the Rent Controller/Court or seek legal assistance. It is strongly advised not to create a trail of illegal payments, as this can complicate things later (including during redevelopment when developers check for clear chain of tenancy). During redevelopment, the current occupants’ actual possession and legal heirship are recognized. Developers in Mumbai are accustomed to dealing with tenancies not formally transferred but continuously occupied by the tenant’s heirs, especially when the family can prove residence and rent payment. To safeguard your rights, keep all rent receipts, pay rent by traceable method (online, cheque, receipt), and keep all utility and government correspondence in your present resident’s name. If you wish to formalize the name transfer, send a formal, documented request and follow up periodically. Do not agree to any illegal or unaccounted payments.

Summary:
Legally, do NOT pay black money for name transfer—the law is on your side as legal heirs and continuous occupants. You can continue as you are, provided you keep records and pay rent regularly. Paying even once does not guarantee the landlord won’t ask again later. Your rights as tenants (and in redevelopment) rest on possession, heirship, and regular rent—not the landlord’s illegal demands.

If you need help with a formal request letter, advice on gathering supporting documents, or representation if pressured or threatened by the landlord, please feel free to contact me for a professional consultation.

File a RCC in small causes Court, Mumbai under Section 7 (15) (d) of Maharashtra  Rent Control Act, 1999 enclosing death certificate  of original tenant praying of transfer of tenancy in the  name of serving legal heirs enclosing bhade chiiti. Court will direct landlord  to transfer the  tenancy to said legal heirs. No need to pay a single rupee to landlord, you need to pay only the  lawyer's fee which  cannot be more than 50k.

I hope your query has been solved by my learned friends. If you need any further consultation, kindly post the same.