Mr. Bharat Chugh has given valuable advice. Kindly follow it.
Did Reliance insist for LA in writing and did they quote any reason/demand for need of LA?
Were you a nominee on record in all documents?
"Section 8 of the Hindu Succession Act 1956 takes care of succession of properties of a male Hindu dying intestate (i.e. without executing any will). The said section creates a classification between the different types of legal heirs. Class I legal heirs are the near and dear ones of a person like widow, son mother daughter etc, whereas Class II consists of remoter heirs like brothers and sisters. If there are any legal heirs in class I then the property is divided equally amongst them all and the heirs in class II are excluded.
The nomination indicates the hand which is authorized to receive the amount on the
payment of which the dept. gets a valid discharge of its liability."
If you were a nominee, and no other legal heir contested the claim, company should have paid the proceeds to you.
Also
“As per the Nomination and Labour Welfare Laws, “it is pertinent to note that while an employee has family, nomination in favour of an outsider (including Mother, Sister and Brother) is void. The rightful claimants to the sum under a policy or scheme or the share in the property as the case may, are the LEGAL HEIRS OF THE DECEASED, AND NOT THE NOMINEES."
In India, owing to the non-prevalence in the name change for nomination soon after marriage(legally), this rider option is automatically made in to effect. If the employee is unmarried, his settlement goes to his decalred nominee (father/mother/ brother etc) or any legal heir in succession by default.
In all government organizations this process is followed.
https://www.epfindia.com/members_benefit.htm
“Settlement under para 70:
(Accumulation of a deceased member) through Form No. 20
70(i) If a nomination exists, payment is made to the nominee in accordance with Form 2(R) . (Nomination and Declaration Form).
Rules Of payment of Gratuity
“ (2) A nominee of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of section 4 shall apply, ordinarily within thirty days from the date of gratuity became payable to him, in Form ‘J’ to the employer:
Provided that an application in plain paper with relevant particulars shall also be accepted. The employer may obtain such other particulars as may be deemed necessary by him.
Payment of Gratuity act 1972
The employer needs to deposit the gratuity liability within one month with the "Controlling officer" in case of a dispute. the local DLC would in all probability be the controlling officer. They would resolve the dispute in terms of the applicable law and release the payment to the rightful claimant. See section 7(4) of payment of gratuity act 1972
https://lawcommissionofindia.nic.in/101-169/Report137.pdf
2.5.1 Inaction or Indifference on the part of Employer
Before you sign any statement company has to supply you the FNF statement and after you are satisfied everything has been rightly accounted for you may sign the FNF statement. You can also mention that the FNF statement is ought to be correctly prepared by the employer and in case anything is found missed/ignored by employer you can stake a claim at any point of time.
You can demand by a separate letter under acknowledgment addressed to good offices of company i.e. appointing authority, MD, Head-HR,. Company Secretary, to supply you by registered post/speed post only,a list of terminal benefits/payables to you as per company policy and a certified copy of the rules of the company and corresponding law of the land.
While it shall be pertinent to know all payables by the company to you and corresponding rules, it shall be appropriate to approach a competent and experienced service lawyer and proceed under expert advice.
