Learned experts/members have given valuable advice. Kindly follow it.
It is felt that your query is pertaining to:
THE EMPLOYEES' PROVIDENT FUNDS SCHEME, 1952
And your reading of the rules of the scheme is correct.
You have posted that “I have no "family" as defined in point 2 given above,”
If an employee has a "family", can he make nomination in favour of brother?: No nomination can be made under the E. F. P. Scheme in favour of a person who is not a member of the "family". The word "family" is defined in Para 2(g) of the Scheme and according to the definition brother is not a member of the "family". The nomination made in favour of brother is invalid.
What is the provision of the Scheme in the matter of nomination by a member?: Each member has to make a nomination to receive the amount standing to his credit in the Fund in the event of his death. If he has a family, he has to nominate one or more persons belonging to his family and none other. If he has no family he can nominate any person or persons of his choice but if he subsequently acquires a family, such nomination becomes invalid and he will have to make a fresh nomination of one of more persons belonging to his family. A nomination can be modified by the member at any time. {Para 61}
Who is entitled to receive the accumulations in the Provident Fund account of a deceased member?: On the death of a member the amount standing to his credit in the Fund is payable to his nominee or nominees. If there is no nominee, such amount is payable to his family members in the manner specified in Paragraph 70 of the Scheme or in their absence to the legal heir. {Para 70}
And
{iii} in Para 70
(iii) in any case to which the provisions of clauses (i) and (ii) do
not apply the whole amount shall be payable to the person legally entitled to it. e purpose of effecting a nomination is to facilitate the payment of the funds held in your name in the scheme to the nominee and the institution can discharge its liability.
Hindu Succession Law applies for division of wealth in case a person dies without a written WILL.
Legal heir as per Hindu Succession law {in case a will is missing}
First right on wealth is of Class 1 Legal heir, then Class II in their sequence and if both are missing the property is passed to the agnates and cognates of the deceased in succession.
Class 1 Legal Heir: Son/Daughter, Widow, Mother, Son/Daughter of a pre-deceased son (per-deceased means “already Dead”),Son/Daughter of a pre-deceased Daughter, Widow of a pre-deceased son, Son/Daughter of a pre-deceased son of a pre-deceased son (3 levels),Widow of a pre-deceased son of a predeceased son.
Class II Legal Heir: Father, Brother/Sister, Son’s daughter’s son/daughter, Daughter’s son’s son/daughter, Daughter’s daughter’s son/daughter, Sibling son/daughter, Father’s Parents, Brother’s widow, Father’s sibling, Mother’s parents, Mother’s sibling
Your brother and sister {both from Class II legal heir} can be nominated by you.
Agnate: is a relative if he/she is related by blood or adoption wholly through the male’s chain line.
If both Class I and II legal heir are missing first preference shall be given to Agnates.
Cognates: is a relative said to be cognate of the other if the two of them are related by blood or adoption, but not totally through males i.e. female is involved.
As you wish to pass your wealth to specific person with specified share you may change ownership and nomination of all of your accounts, mutual funds, FD’s etc….. and it shall be still better to have a/c in ‘Former or Survivor Mode’ and have the same joint holder’s name as nominee.
Also write a will with clear directions and register it, and thus leave no confusion.
Valuable advice of learned experts/members is sought.