Key Highlights
- Maharashtra plans to introduce India’s first law dedicated to blockchain-based land tokenization.
- Chief Minister Devendra Fadnavis has ordered officials to draft the Maharashtra Digitisation and Exchange of Land Token Assets Act.
- A committee including SEBI, BSE, NSE, blockchain experts, and industry participants will help shape the legislation.
Maharashtra is preparing to introduce what could become India’s first dedicated legal framework for blockchain-based real estate tokenization. The state government seeks to modernize property ownership and transactions through distributed ledger technology.
According to a Times of India report, Chief Minister Devendra Fadnavis on Monday directed officials to draft the Maharashtra Digitisation and Exchange of Land Token Assets Act, a proposed law that would allow land and real estate assets to be represented as blockchain-based digital tokens.
If enacted, the legislation would provide legal backing for tokenized property ownership, allowing real estate assets to exist as verifiable digital records while potentially making buying, selling, and financing property faster and more efficient.
Why Maharashtra is bringing blockchain to property
The proposal was discussed during a meeting at the Sahyadri State Guest House, where Fadnavis directed the administration to establish a committee comprising representatives from the Securities and Exchange Board of India (SEBI), the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE), along with blockchain experts and industry professionals.
The committee has been tasked with studying international laws, regulations, and market practices before preparing recommendations for Maharashtra’s legislation.
According to Fadnavis, the state intends to examine successful global tokenization models before designing its own framework. “The value of real estate will be increased by tokenising them through the blockchain method. For this, the laws, rules and practices currently existing in the world should be studied. Maharashtra is the first state in the country to propose such a law,” he said.
How property tokenization would work
Under the proposal, land and real estate assets would be represented as blockchain-based digital tokens linked to their ownership or value. Rather than relying solely on traditional paper records, ownership and transfers could be recorded on blockchain infrastructure while retaining legal recognition.
Officials said each token would correspond to the value of the underlying property to make transactions more transparent and efficient. The state also believes tokenization could make it easier for property owners to unlock the value of their assets. At present, property sales, title verification, and using real estate as loan collateral often involve lengthy documentation and legal procedures.
Fadnavis said tokenizing land records could reduce the time required for property transactions and for using real estate as loan collateral, making the overall system more efficient. He added that tokenization could also enable property owners to realize economic value that is currently difficult to access.
Builds on earlier crypto reforms
The proposal builds on Maharashtra’s broader push to integrate blockchain into public infrastructure.
Earlier this month, the state became the first in India to recognize cryptocurrencies as recoverable property after amending the Maharashtra Protection of Interest of Depositors (MPID) Act, allowing authorities to seize, value, and liquidate digital assets in financial fraud investigations.
The latest initiative extends that focus beyond crypto enforcement to real-world asset infrastructure, reflecting a broader shift in how blockchain is being viewed across India.
The proposal also comes amid growing debate over the country’s digital asset policies. Recently, Coinbase CEO Brian Armstrong described India’s crypto tax regime as “one of the most punitive” globally, arguing that clearer regulation would strengthen the country’s position in the digital asset economy.
Against that backdrop, Maharashtra’s latest move suggests policymakers are increasingly exploring blockchain as a tool to modernize traditional industries, rather than limiting its role to cryptocurrency.
A potential blueprint for other states
If approved, the Maharashtra Digitisation and Exchange of Land Token Assets Act would make Maharashtra the first Indian state to establish a legal framework specifically governing blockchain-based land tokenization.
While the committee has only begun its work, the proposal could become one of India’s most significant blockchain policy initiatives, potentially serving as a model for other states exploring the use of distributed ledger technology in property markets.
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