Maharashtra moves to write India’s first law for tokenizing land and property
Maharashtra is preparing what could become India’s first dedicated legal framework for property tokenization. Chief Minister Devendra Fadnavis has instructed officials to draft the Maharashtra Digitisation and Exchange of Land Token Asset Act (DELTA Act), a blockchain-enabled law intended to digitize and enable exchange of tokenized interests in immovable property.
Why it matters
- The DELTA Act would allow land and real estate to be represented as digital tokens on a blockchain, enabling fractional ownership, easier transfers and potentially unlocking large pools of otherwise illiquid capital.
- Fadnavis pitched the move as part of Maharashtra’s strategy to become a $1 trillion economy by 2030, saying tokenization could “unlock the value embedded in land and real estate assets for public benefit.”
- If enacted, Maharashtra would be the first Indian state to adopt a statute specifically tailored to blockchain-based property tokenization.
What the proposal includes
- Tokenization of immovable property on a blockchain-enabled digital framework, with transactions executed through tokens tied to asset value.
- A government-formed expert committee—bringing together representatives from SEBI, BSE, NSE, domain specialists and industry professionals—to draft a comprehensive legislative framework.
- A directive to study international regulatory models, industry practices and legal precedents while shaping the law.
Where this sits in India’s policy landscape
- Interest in tokenizing real-world assets has been rising among Indian policymakers, but India lacks a standalone national law for tokenized assets.
- Last December, MP Raghav Chadha urged the central government to introduce a Tokenization Bill and a regulatory sandbox to let new models be tested under supervision. Proponents argue tokenization can broaden access to high-value assets for smaller investors.
- Maharashtra has previously signaled intent on this front: in November 2025, Fadnavis said digitizing asset transfers could free up an estimated ₹50 trillion in idle capital—particularly in Mumbai’s property market.
Existing tokenization activity and regulator stance
- Limited, regulated tokenization projects already exist in India. In GIFT City, platforms such as Tokeny and Terazo have launched tokenized real estate structures using SPVs and public chains like Polygon—operating under current securities and virtual digital asset rules rather than a bespoke law.
- At the national level, regulators remain cautious about cryptocurrencies. Documents reviewed by Reuters show the Reserve Bank of India has recommended keeping cryptocurrencies and privately issued stablecoins outside the regulated banking system, citing financial stability and monetary sovereignty risks.
- Tax and enforcement remain concerns: India’s Income Tax Department has warned about difficulties tracking crypto transactions on overseas exchanges and self-custodied wallets, despite the existing 30% tax on crypto gains.
Regulatory tightening in practice
- India’s Financial Intelligence Unit has moved to strengthen oversight: from January 2026, crypto exchanges were instructed to retain records of OTC cryptocurrency transactions over $10,000, including beneficial ownership, source of funds and destination wallets.
- Separate FIU guidance introduced tougher KYC measures such as live selfie verification, geolocation checks and periodic customer record updates based on risk profiling.
International context
- Several jurisdictions—UAE, Singapore, Hong Kong, Germany and the United States—have already tested or implemented regulated frameworks for tokenized real-world assets and fractional ownership. Fadnavis said Maharashtra will draw on these global models and best practices.
Next steps
The DELTA Act is now in the drafting phase. The expert committee convened by the state will prepare the legal framework before any bill is introduced for legislative consideration. If the proposal advances, it would mark a major step for blockchain applications in Indian real estate—bringing both opportunities for greater liquidity and access, and a range of legal, tax and regulatory questions that will need to be resolved.
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