Maharashtra has advanced plans for a blockchain-based legal framework to tokenize immovable property, with Chief Minister Devendra Fadnavis directing officials to prepare draft legislation that could make the state the first in India to introduce such a law. According to a statement shared by Maharashtra Chief Minister Devendra Fadnavis on X, the state government has begun work on the proposed Maharashtra Digitisation and Exchange of Land Token Asset Act (DELTA Act), which is intended to create a legal framework for digitizing and exchanging tokenized interests linked to immovable property through blockchain technology. Fadnavis chaired a meeting in Mumbai to review the draft legislation and instructed officials to prepare the proposal as Maharashtra pursues its target of becoming a $1 trillion economy by 2030. The Chief Minister said developing new sources of revenue would be important in reaching that goal and described property tokenization as a way to unlock the value embedded in land and real estate assets for public benefit.
As part of the legislative exercise, Fadnavis directed the formation of an expert committee comprising representatives from the Securities and Exchange Board of India (Sebi), BSE, and NSE, along with domain experts and experienced professionals, to prepare a comprehensive draft of the legislation. According to the latest statement, an expert committee comprising representatives from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), along with domain specialists and experienced professionals, will prepare a comprehensive legislative framework. The committee will cover all relevant stakeholders and study the laws, regulations and best practices adopted internationally in this field before finalising the legislation. Fadnavis directed the Urban Development Department and the Law and Judiciary Department to expedite work on the proposed legislation after examining relevant rules framed by the central government, and also directed officials to study international laws, regulatory models and industry practices while drafting the legislation.
Under the proposed law, immovable properties would be tokenized on a blockchain-enabled digital framework, with transactions conducted through tokens linked to the value of those assets. According to the latest statement, the DELTA Act would create a legal framework for digitizing and exchanging tokenized interests linked to immovable property through blockchain technology. Property tokenization refers to the process of representing ownership or economic value linked to a physical asset through digital tokens recorded on a blockchain network. In simple terms, a property's value can be divided into digital units, with each token representing a defined interest in the underlying asset. Such a system could potentially make real estate assets easier to transfer, access and monetise, depending on the regulatory framework. Fadnavis stressed that the entire ecosystem developed through blockchain technology would be digital, with property transactions taking place through tokens linked to the underlying value of land. The legal framework would seek to provide statutory protection to such transactions while ensuring clarity over property ownership and clearly establishing ownership rights in blockchain-enabled property transactions.
The government believes digitising property transactions could significantly reduce the time involved in property sales and purchases, as well as in mortgaging assets to banks for loans. According to the latest statement, Fadnavis observed that the existing processes for property purchase, sale and mortgage financing are often time-consuming. The proposed law could also augment the state's revenue beyond its current economic targets, with the Chief Minister noting that in addition to benefiting property owners, the proposed framework is expected to enhance the State's revenue. Fadnavis directed the Urban Development Department and the Law and Judiciary Department to expedite work on the proposed legislation after examining relevant central government regulations. The present system of property transactions and mortgaging assets for loans is time-consuming, and digitisation through tokenisation could make the process more efficient while enabling property owners to realise the untapped value of their assets. While blockchain technology can improve transparency and record-keeping, property ownership involves complex issues such as registration, transfer rights and regulatory approvals.
If enacted, the DELTA Act would make Maharashtra the first Indian state to introduce legislation dedicated to blockchain-based property tokenization, according to the Chief Minister. As reported by PTI, Fadnavis said the proposed legislation should build on Maharashtra's history of pioneering reforms and position the state as a leader in adopting emerging technologies for governance and economic development. The Chief Minister noted that several developed countries have already begun creating platforms for property tokenisation, and Maharashtra should not lag behind in adopting such emerging technologies. Fadnavis emphasised that globally, property tokenisation is emerging as a means of generating new income streams and enhancing the value of land assets, and Maharashtra should move quickly to establish an enabling legal framework. Fadnavis directed officials to study global laws, regulations and platforms governing asset tokenisation before finalising the framework. The proposal now moves into the legislative drafting stage, where the expert committee will be responsible for developing the legal framework before any bill is introduced for consideration.
