A person may posses two types of properties or wealth. First is the ancestral property, which is inherited by him from his parents as per his share because he might had some brothers and sisters who also might had got a part of that ancestral property. So, that is the first type of wealth he possesses. It could be a significant amount in terms of money because of the phenomenal rise in the value of real state in last few decades. The second type of wealth is what he has earned himself through his job or business or other earning engagements . He might have got some new houses constructed from it or invested it in some investment avenue, from where he might be getting a huge return but all this is his own earned money and he is free to give it to anyone as he feels.
As per the law, first wife and her children as well as second wife and her children, all are entitled for a share in the ancestral property. Now, in your case you have mentioned that your father has already settled the financial things with the first wife. But what are the details of that settlement? Is it mentioned there that in lieu of the ancestral property share of the first wife and her daughter, so much amount is being paid to the first wife and her daughter, so that, they have no right in the ancestral property. With that settlement their right to that ancestral property would be relinquished. Please check that settlement. Generally divorce settlement are only confined to the alimony money and some monthly maintenance, which is to be provided to the first wife. For relinquishing their rights in the ancestral property a separate affidavit is to be presented in the property registration and transfer office in the area concerned.
Please check all those details and I again repeat that they all have a right in the ancestral property and if their share is not given to them, they can approach a court for that.
Knowledge is power.