Maharashtra Begins Work on India's First Dedicated Property Tokenization Law

Maharashtra has begun drafting what could become India's first standalone law for tokenizing immovable property, signaling a major push to bring blockchain-based real estate interests into a regulated framework. Chief Minister Devendra Fadnavis has instructed officials to prepare draft legislation for the proposed Maharashtra Digitisation and Exchange of Land Token Asset Act (DELTA Act). The initiative is designed to digitize land and real estate interests and enable their trading through tokenized representations. Under the envisioned framework, ownership or value-linked interests in property would be recorded on a blockchain-backed digital system and transferred via tokens. The model is intended to support fractional ownership and token-based transactions, potentially unlocking liquidity tied up in high-value real estate and widening access for smaller investors. Fadnavis reviewed the proposal in a Mumbai meeting and asked officials to fast-track the work, linking it to the state's goal of becoming a $1 trillion economy by 2030. He positioned property tokenization as a way to release value embedded in land for broader public benefit. Mumbai's real estate market is expected to be central to the effort; in earlier remarks, Fadnavis said digitizing asset transfers in the city could help mobilize an estimated ₹50 trillion in idle capital. An expert committee will draft the legislative framework, bringing together 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 industry professionals. The committee has been tasked with benchmarking international laws and regulatory approaches so the proposal aligns with global best practices. The move comes as tokenization of real-world assets gains momentum in India, even while national policy toward cryptocurrencies remains cautious. In December, MP Raghav Chadha called on Parliament to introduce a standalone Tokenization Bill to enable fractional ownership of commercial real estate, infrastructure and intellectual property, and to establish a regulatory sandbox for new models. Supporters argue tokenization could lower entry barriers and broaden investment participation for the middle class. Some tokenized real estate structures are already operating in tightly regulated settings, particularly in GIFT City. Providers including Tokeny and Terazo have used SPVs and public blockchains such as Polygon to build tokenized setups. These initiatives have been structured under existing securities and virtual digital asset rules rather than under a dedicated tokenization statute. At the same time, regulatory scrutiny of crypto activity continues to intensify. Reuters-reported documents indicate the Reserve Bank of India has again urged that cryptocurrencies and privately issued stablecoins remain largely outside the regulated banking system, citing concerns over financial stability and monetary sovereignty. The Income Tax Department has also flagged enforcement difficulties involving cross-border crypto transactions and self-custodied wallets, despite the 30% tax on crypto gains. Compliance requirements are tightening further. India's Financial Intelligence Unit has instructed major exchanges to retain records of over-the-counter crypto trades above $10,000 starting January 2026, including beneficial ownership and source-of-funds details. New FIU guidance also calls for more stringent customer verification measures such as live selfies, geolocation checks and periodic updates. Globally, multiple jurisdictions—including the UAE, Singapore, Hong Kong, Germany and the United States—have already piloted or implemented regulated frameworks for tokenized real-world assets and fractional ownership. Fadnavis said Maharashtra's draft will draw lessons from these models. The proposal now moves into the formal drafting phase. The expert committee will develop the legal text and regulatory architecture before any bill is introduced. If enacted, the DELTA Act would represent a significant step toward integrating blockchain-based asset tokenization into India's property and capital markets.