Under the pagdi system, the tenant has certain rights over the property but not over the land. The tenant can even sub-let the premises or sell the property, by giving a share to the owner.
As per the Maharashtra Rent Control Act of 1999 which came into effect from March 31, 2000, the system was made legal. Section 56 of this Act deemed it legal.
Therefore, a land owner could confer a kind of ownership to the tenant for a deposit of money. This partial ownership means that the tenant has a certain right over the property but not the land. In this case, the part-owner can even sublet the premises but the rent that he gets must be divided between the actual owner of the property and the part-owner that is the first tenant.
The pagdi system was legalised by the Maharashtra Rent Control Act, 1999. Generally, upon the death of a pagdi tenant, the tenancy rights are transferred to the legal heir/s who were living in the flat when the tenant died, by asking the landlord to issue the new rent receipts in the heir/s name/s.
Your father no doubt is protected by tenancy rights but he cannot transfer the tenancy rights to his sons or wards during his lifetime. Instead he can talk to the landlord for arranging to enter into a fresh agreement with you while he terminates his tenancy, this can be on some compromised agreements.