Pagadi Property issue

I have a property in Mumbai Sion which comes under pagadi system where i am living currently. The property is named under my first grand mother ( Grandfather married again after Demise of my First Grandmother) during the time of her demise my dad and mom were living with them. Later due to personal reason we shifted to another place but we were taking care of them as much as possible. My grandfather died 3 years back and my 2nd grand mother is living in Village, we are taking care of her too. Now we have been living here from past 6 months and owner took rent twice but now he is not accepting the rent and asking us to pay 35% of the price to change the name to my name. We requested him to reduce the amount but he is firm on that and saying either pay or i will pay 65% and leave the property. We don't want to leave the property and as far as we searched he cannot ask for that much high amount transferring. Can anyone advice us what should we do? We were thinking that we have below options : 1. Ask him to file lawsuit and will tackle it by hiring a good advocate 2. Take 65 % and leave ( which we dont want to) 3. Explain him all the rules by calling advocate and try to settle outside court room