He has no son and three daughters.
Eldest daughter died in January 2005, survived by husband and two sons.
Second daughter is my wife and we reside in Mumbai.
Third daughter is in Canada. She, her husband and her son are citizens of Canada.
His widow that is my Mother-In-Law continued staying in rented flat.
Can you please advise how these three properties and mutual funds will get divided into the legal heirs?
Your wife being one of the legal heirs is entitled to an equal share in all the properties let behind by her father, whether self acquired or inherited from his father, but not in the rented property.
In fact nobody has a hare in it because it is rented property and these people are tenants for ever.
All the properties including the movable properties in for the form of mutual funds and fixed deposits shall be shared into four equal parts and besides your mother in law, all her daughters (this includes the legal heirs of the deceased daughter) shall be entitled to 1/4th share each in both movable and immovable properties.